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HomeMy WebLinkAboutECONorthwest Response to Bozeman Housing RFPECONorthwest )'3231-'7ˆ*-2%2')ˆ40%22-2+ Response to RFP October 10, 2014 CITY OF BOZEMAN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING TABLE OF CONTENTS TABLE OF CONTENTS 1 Cover Sheet 2 Project Summary 3 Company Description 4 Team Information 5 Project Organization 7 Relevant Experience 10 References 11 Budget 12 Outline of Services 14 Appendix (Full Resumes) Cover photo courtesy of Flickr user Dan Nguyen, “Bozeman from an airplane, http://bit.ly/1CZ0QQ0, available through a Creative Commons Attribtion-ShareAlike 2.0 Generic license. No changes were made. CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 1 COVER SHEET CITY OF BOZEMAN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING October 10, 2014 Prepared for: City of Bozeman 2 | ECONorthwest PROJECT SUMMARY Our Understanding Affordable housing efforts have taken on greater importance for cities as issues of economic uncertainty and wage stagnation have become more prominent. The residents and government officials of Bozeman place a high priority on this issue. The 2012 Affordable Housing Needs Assessment and Action Plan lays out the area’s challenges and proposes strategies to overcome them. Caught in limbo since the recession, the workforce housing provisions in Ordinance 1710’s zoning and subdivision elements have raised concerns about both the feasibility and effectiveness of their intent. They have subsequently been suspended. Moving forward, the city is seeking an evaluation of these policies and would like to consider other approaches that might better meet its affordable housing and broader community goals. In doing so, this project needs to be grounded in the values of the community and the organizational capacity of the city and its partners. Our ApproachThroughout this project we expect to work closely and collaboratively with city staff to ensure that our efforts are focused on maximizing the benefit to the city. Our approach is to bring information, analysis, experience, and local connections to help the city of Bozeman move forward with affordable housing policies to achieve the ultimate goal of reducing housing cost burdens and creating more affordable housing, while being fair and implementable. Incentive zoning and inclusionary programs encourage the private sector to provide public benefits (i.e. affordable housing) through a unique combination of zoning configurations and economic incentives. Experience with other cities suggests that these programs need to be specific to the needs of the city, the broader array of other housing and service programs, and current market conditions. We hope this project achieves the following objectives: ▪Clear Program Goals. The city must develop clear achievement goals for their affordable housing programs. As part of this, the city will need to target and structure its programs around the important policy issues such as which income levels to target, whether to apply the programs to rental and/or ownership housing, and whether building affordable housing and/or fees in-lieu be allowed for developers. ▪Targeted Geography. Some cities have restricted their programs to certain areas or even to certain zones within an area. Bozeman will have to view the structure and pricing of the program within a broader consideration of the locations in which the city would like to encourage growth while providing for affordable housing. ▪Pricing and Calibration. Pricing is the most complex (and often controversial) aspect of incentive zoning tools. Valuing the cost of providing affordable housing against the value of incentives, economic competitiveness, and fairness is difficult; strong technical skills in economics and real estate are necessary to propose workable solutions. ▪Implementation. Investment and development cycles are dynamic and unpredictable. The city will want to weigh strategies that provide some flexibility in program strategies to deal with changing market dynamics. Our proposed scope of services responds to the project outcomes listed in the request for proposal including: ▪Work with the city and community to create a framework for evaluating affordable housing programs that meet the community’s needs (e.g. affordable housing outcomes). ▪Review, assess, and recommend changes to existing policy (e.g. Workforce Housing and Planned Unit Development Ordinances) and potential new policies (i.e. inclusionary zoning, etc.). ▪Evaluate all options in terms of how they address Bozeman’s affordable housing goals. Our scope of work outline lays out both a process and task items that ensure the community will have an opportunity to vet the issues at stake. Grounded in strong public policy and technical analysis, and emphasizing community participation, we hope that our product allows city staff and elected leadership to move forward with a workable and implementable affordable housing program(s) that all stakeholders are proud of. This project needs to be grounded in the values of the community and the organizational capacity of the city and its partners. CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 3 COMPANY DESCRIPTION AND CAPABILITY ECONorthwest specializes in the application of economic and financial principles and methods to the evaluation of public policies and investments. Incorporated in 1974, ECONorthwest has completed more than 2,500 projects for public and private clients. ECONorthwest has a staff of approximately 40 people, including offices in Portland, Seattle, Eugene, and Boise. Our work for Bozeman would be completed by staff in ECONorthwest’s Seattle and Portland offices, and by subconsultants Randy Carpenter and Ralph Johnson. Our personnel have advanced degrees and decades of work experience in planning, development, economics, finance, and public policy. ECONorthwest has diverse experience in identifying and quantifying the economic consequences of all types of programs, policies, and events. Our analysis is informed by an understanding of local, regional, and national economies, as well as market trends, demographics, and business and job dynamics. We help our clients plan for future growth, effectively leverage public tools and resources, and make sound decisions. ECONorthwest works with local jurisdictions of all sizes and settings - urban and rural – across the country to identify housing demand, estimate future housing needs, and formulate local policy to meet the housing needs. The result of these studies is a determination of needed housing (based on housing affordability), demand for housing (based on housing preferences), and an estimate of the sufficiency of buildable residential land (based on a comparison of land supply and housing demand). ECONorthwest also assists jurisdictions with development of local housing policy. ECONorthwest projects in real estate development span the range from concept development to implementation, including strategic planning, fiscal impact analysis, site-specific development analysis (financial pro formas and permitting), disposition assistance, and public/private partnerships for development. ECONorthwest’s approach to development is grounded in an understanding of long-term economic trends and indicators and current real estate and market dynamics. Our staff have decades of experience in building public/private partnerships that effectively integrate multiple financing sources and lead to successful development projects. Project ManagementOne of ECONorthwest’s strengths is the management of large, interdisciplinary projects. However, our experience in these projects allows us to work effectively and efficiently at projects of all sizes. We have a logical and holistic approach to problem solving, understand the role of technical analysis in a political decision-making process, and can communicate complicated ideas in a clear and concise manner. We are scrupulous about delivering quality products on time. When unexpected requirements arise, we have systems in place that allow us to shift workload among staff to respond to our client’s needs. We have three main management objectives: ▪Project tracking. Project tracking includes regular progress reports (monthly or more frequently), budget and schedule tracking, and regular update emails to clients. We track our project expenses in real time. ▪Quality control. Our project directors review all interim and final documents. We involve the client in outlining products and review of interim drafts. ▪Efficiency. We focus on both schedule and budget efficiency by eliminating duplicate services, and coordinating electronic communication among all team members. We encourage you to contact our past clients as references for our capability to deliver results in a timely fashion. They have been informed that they are serving as references and are prepared to talk with you. ECONorthwest has teamed with Randy Carpenter and Ralph Johnson to provide additional affordable housing, zoning, and connections with the Bozeman community. We believe this partnership will allow us to bring a wealth of housing experience gained from our work in other communities and ground it in the values and planning context of Bozeman. 4 | ECONorthwest Beth Goodman, Analyst Goodman joined ECONorthwest as a planner and project manager in 2005, focusing on land use planning and policy analysis. Goodman specializes in managing and executing complex long-range land-use projects for cities and counties across the United States. Morgan Shook, Project Manager Morgan Shook is a senior policy and economic analyst interested in innovative economic development strategy related to real estate, transportation, and infrastructure planning. His expertise in economic, fiscal, market, GIS, and demographic analysis has been applied to financial and policy projects for cities, counties, and ports across the State. Abe Farkas, Project Director Abe is the development services director with ECONorthwest. Farkas has over three decades of experience in planning and developing a wide variety of mixed- use, sustainable projects and structuring successful public-private partnerships that have improved urban neighborhoods, TEAM INFORMATION Our team will be lead by Abe Farkas and Morgan Shook who have decade of experience in land use, housing, and real estate development. Abe is currently serving on the Meyer Memorial Trust Affordable Housing Cost Efficiency Work Group that has been asked to make recommendations on how Oregon can effectively house more low-income people. The Group’ s agenda includes changes to affordability: policies, programs, costs of construction and costs of funding, other development efficiencies, and long term life cycle improvements. Morgan recently finished co-chairing and advisory committee on affordable housing incentives for the city of Seattle to provide input, guidance, and recommendations on Seattle’s two primary affordable housing incentive programs: the multifamily property tax exemption and the affordable housing elements of incentive zoning. Members on the committee represented a diversity of viewpoints with backgrounds in labor, social equity, public policy, and affordable and market-rate housing development. Full team resumes can be found in the Appendix. Erik Rundell, Analyst Erik Rundell is a senior policy and GIS analyst and urban planner specializing in land use, demographic, economic and market analysis, as well as fiscal impacts and funding strategies. He works with clients to understand and address their unique challenges and develop strategies for realizing near- and long-term opportunities. Mike Wilkerson, Economist Mike Wilkerson joined ECONorthwest in 2013. His areas of expertise include econometrics and applied microeconomics in the fields of real estate, banking, finance, transportation and urban economics. He has applied expertise in projects involving housing market analysis, economic impact analysis, regional and micro economic forecasting, benefit-cost analysis, development feasibility studies, and litigation support and expert testimony. Ralph Johnson, Planning Consultant Professor Johnson has taught urban design and been the director of the Community Design Center at Montana State University since 1986. In addition to teaching he has maintained an active planning and design consultancy with an emphasis on providing sustainable, contemporary and creative responses to planning issues faced by Rocky Mountain communities. downtowns, business districts, and university environments. Farkas’ work at ECONorthwest, as well as his past experiences at the Portland Development Commission (PDC) and the Cities of Eugene and Seattle include preparing and implementing redevelopment strategies. Randy Carpenter, Planning Consultant At the Sonoran Institute, Randy is responsible for all aspects of Program Management, including fundraising, budgeting, staff management, program planning, project oversight. Created and manage the Sonoran Institute’s Community Builders (communitybuilders.net) initiative, which helps communities make decisions about how they grow by making the connection between CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 5 INFORMATIONAL CONTENT PROJECT ORGANIZATION Our understanding of the project determined the composition of our team. We have assembled a fairly small and focused team of professionals. This means the staff members interacting with the City and its partners are the same staff members writing the reports and conducting the technical analysis. The projects and references showcased in this proposal are a direct reflection of our team’s depth of expertise. Development Economics Process ECONorthwest Morgan Shook Mike Wilkerson Erik Rundell CITY OF BOZEMAN Affordable Housing Policy Assessment ECONorthwest Abe Farkas Morgan Shook Beth Goodman Planning Consultants Randy Carpenter Ralph Johnson Community Engagement ECONorthwest Abe Farkas Planning Consultants Randy Carpenter Ralph Johnson Project Management ECONorthwest Abe Farkas, Project Director Morgan Shook, Project Manager Planning Consultant Randy Carpenter CAHAB 6 | ECONorthwest Exclusionary Zoning as a Barrier to Affordable Housing ECO worked with the National Center for Smart Growth Education and Research to evaluate methods for identifying barriers to affordable housing provision for the US Department of Housing and Urban Development (HUD). Specifically, the project considered local-level land use codes and their affect on multi-family housing development. Using detailed GIS data combined with a qualitative evaluation of zoning codes, the project compared actual to predicted development patterns to identify areas where local development code might restrict new multi- family development. The study focused on five case study areas (metro areas and the surround jurisdictions) to develop a statistical estimate of the degree to which regulations impede multi- family housing development. The results of the project were published in the book Growth Management and Affordable Housing: Do They Conflict? Anchorage Housing Market Analysis For the Municipality of Anchorage, ECO developed a forecast of housing demand, focusing on demand for compact housing types. The project included the following tasks: (1) a survey of housing preferences, (2) a forecast of overall housing demand, (3) an analysis of the financial feasibility of building compact housing in Anchorage, (4) assistance with development methodology for estimating the supply of buildable land, and (5) policy recommendations for encouraging compact housing in Anchorage. The consulting team worked with Municipality staff to facilitate a housing committee discussion of the issues addressed in the project. National Study of Subdivision and Zoning Controls as a Regulatory Barrier to Affordable Housing ECO assisted the National Home Builders Association with an assessment of subdivision and zoning ordinances as a regulatory barrier to affordable housing for the US Department of Housing and Urban Development (HUD). ECO developed a nationally representative sample of subdivision and zoning requirements and developed a database of zoning and subdivision regulations for more than 450 jurisdictions across the US. ECO analyzed the regulatory requirements to estimate their cost implications for housing affordability. ECO published a summary of the results of the survey in the American Planning Association’s publication Zoning Practice. Story Mill Development Affordable Housing Strategy For a private developer in Bozeman, MT, ECONorthwest developed an affordable housing plan for a sustainable, mixed-use, mixed-income infill redevelopment. The developer and the City, cognizant of Bozeman’s housing gap, wanted to dedicate 10% of the Story Mill units to work-force affordable housing. ECO undertook a study of Bozeman housing affordability and developed a plan that outlined strategies for public-private partnerships. ECO provided detailed action plans for the City and potential private partners, a phasing strategy with achievable productions goals, and a potential public-private financing plan.The project was derailed by onset of the recession and related issues. The collection of projects below provides a sampling of the related experience of our team members. These projects demonstrate exceptional work, effective approaches, and successful implementation strategies in similar communities across the U.S. Gerrit Knaap, Stuart Meck, Terry Moore, and Robert Parker Zoning as a Barrier to Multifamily Housing Development American Planning Association Planning Advisory Service Report Number 548 Zoning as a Barrier to Multifamily Housing Development American Planning Association PAS Report Number 548 CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 7 RELEVANT PROJECT EXPERIENCE Austin Housing Affordability As part of a multi disciplinary team, ECO has been assisting the City of Austin, TX in a comprehensive land use code rewrite. ECO’s role has been to lead efforts in addressing housing affordability aspects of the code. In that regard ECO has assessed and is making recommendations that include: accessory dwelling units, unit sizes, parking ratios, set backs and other land use aspects. ECO has also made policy and program recommendations that address incentives, organizational capacity to delivery affordable housing, partnership approaches and other contributing factors of affordability. Seattle’s University District Affordable Housing Impact StudyHousing affordability is a key concern for the University District community and was considered in an environmental impact analysis evaluating changes to future land use and zoning. The analysis considered the key drivers of the affordable housing challenge for the community and provided an asset inventory of current income restricted housing in the area. The analysis then evaluated how changes to zoning and land-use might make the affordable housing challenge better or worse. Finally the analysis suggested how the city’s current affordable housing programs might mitigate issues of affordable housing and housing displacement. Wilsonville, Oregon Housing Needs Assessment ECONorthwest is conducting a housing needs analysis to project housing demand over the next 20-years. The project considers key factors that affect future housing need: (1) current conditions in Wilsonville’s housing market relative to the Portland region, (2) historical growth in Wilsonville’s housing market, (3) the demographic characteristics of Wilsonville’s population (existing and future), and (4) other factors that will affect housing demand in Wilsonville (e.g., commuting or economic growth). The project will result in a comprehensive assessment of Wilsonville’s housing needs and recommendations about changes to Wilsonville’s housing policies. Wilsonville’s mayor, Tim Knapp, praised the Residential Land Study report in particular, saying: “I thought the draft synopsis was remarkable. Every page I turned, I said “Wow, really”…I thought it presented the data really well. I think that anybody that has even a modest knowledge of Wilsonville can look at this and find a lot of very specific things that would fill in their knowledge about what’s been happening here and the why’s behind it.” Bellevue Downtown Livability Initiative– Incentive Zoning Practices The City of Bellevue is engaged in a targeted review of regulations that guide downtown development and land use activity. The current incentive system is a key land use regulation used to support the Downtown area. It is focused on encouraging residential development, structured or underground parking, and public open spaces, and other amenities in exchange for additional height and building area. While at a previous firm, ECONW employees, produced Wilsonville Residential Land Study 5 SUMMARY OF THE COMPREHENSIVE PLAN In sum, Wilsonville has long had a strong vision to provide a mix of housing types that match the financial capacity of the community. That commitment is reflected in the City’s Comprehensive Plan and implementing ordinances and played a big role in the residential development pattern seen in Wilsonville in 2013. Providing a mix of housing types and densities to create a whole community was envisioned in the original Comprehensive Plan map and text—a vision that the City has consistently implemented. Residential - Village Residential Commercial Industrial Public UGB Wilsonville COMPREHENSIVE PLAN MAP FINAL Wilsonville Residential Land Study6 SNAPSHOT OF WILSONVILLE Wilsonville is growing. Between 2000 and 2012, Wilsonville grew faster than the tri-county region. Wilsonville added more than 6,500 residents between 2000 and 2012. Wilsonville’s location, transportation connections, and mix of amenities are attractive to younger people who want to live in the southern part of the Portland Region. Snapshot of Wilsonville Population and housing characteristics are useful for better understanding Wilsonville and the people who live here. Characteristics such as population growth, age of residents, household size and composition, commuting patterns, average pay per employee, and home ownership provide useful information about the City’s historical development patterns and how Wilsonville fits into Clackamas County, Washington County, and the broader Portland Region (defined here as Multnomah, Clackamas, and Washington counties.) Unless otherwise noted, all data in this document are from the U.S. Census. Wilsonville is young. Wilsonville has a relatively young median age and a large share (34%) of young working-age residents. 3.2% 36 20,515 41 381,680 35 542,845 1,672,970 1.2%1.0%1.7% AVERAGE POPULATION GROWTH PER YEAR, 2000-2012 POPULATION, 2012 Source: Portland State University, Population Research Center MEDIAN AGE, 2010 Wilsonville Wilsonville Wilsonville Wilsonville Washington Co. Washington Co. Washington Co. Washington Co. Clackamas Co. Clackamas Co. Clackamas Co. Clackamas Co. Portland Region Portland Region Portland RegionWilsonvilleWashington Co.Clackamas Co.Portland Region 34%25%32%32% PERCENT OF RESIDENTS WHO ARE 18-39 YEARS OLD, 2010 FINAL A selection from the Wilsonville Housing Report. 8 | ECONorthwest a memorandum focused on researching other practices in incentive zoning being used successfully in other cities to provide a range of public benefits – including affordable housing. This review first provides a brief discussion of policies issue related to incentive zoning, an overview of how incentive zoning works, and follows up with a select review of case studies of practices in other cities. Lastly, the review then assesses the applicability of these tools for the city. Eugene Comprehensive Land Needs Assessment and Envision Eugene For the City of Eugene (Oregon), ECONorthwest conducted a comprehensive review of the city’s urban growth boundary. A key product of the UGB review was a housing needs analysis that meets the requirements of Oregon’s Statewide Planning System. ECONorthwest worked with City staff and a community advisory committee to identify assumptions about issues that are a special concern in Eugene, including: the impact of expected demographic changes on housing need, student housing needs and development, development potential on partially vacant residential land, redevelopment opportunities, residential development potential in mixed-use zones, and the impacts of physical constraints (e.g., steep slopes) on the capacity of residential land. ECONorthwest continues to work with City of Eugene staff on the Envision Eugene project. Newport Housing Needs AnalysisFor the City of Newport (Oregon), ECONorthwest conducted a housing needs analysis, consistent with Oregon’s Statewide Planning System. ECONorthwest developed a housing market analysis and a 20-year forecast of housing growth and residential land demand. The project considered key factors that affect future housing need: (1) current conditions in Newport’s housing market relative to the Portland region, (2) historical growth in Newport’s housing market, (3) the demographic characteristics of Newport’s population (existing and future), and (4) affordability of housing for people who live in Newport (which is a tourist destination on the Oregon Coast). As part of this project, ECONorthwest developed strategies for new policies and programs to increase the supply of affordable housing in Newport. Grants Pass Urbanization Study Working with the City of Grants Pass, ECONorthwest conducted a comprehensive review of the city’s urban growth boundary. The technical analysis included a buildable lands inventory, a housing needs analysis, an economic opportunities analysis, and a serviceability analysis. The project also included a visioning process that used online surveys and public forums to solicit citizen input. Using the technical work and public input, the ECONorthwest team developed a set of growth scenarios for review by the city. After selecting a preferred growth scenario, the ECONorthwest team developed a set of findings to support the UGB expansion. Springfield Housing Needs Analysis ECONorthwest conducted a housing needs analysis to determine how much and what type of housing that Springfield will need over the next 20 years. The study focused on housing demand in the community and was combined with land supply data developed by the city to determine if the city had a sufficient supply of land to meet 20 years of housing need. The study included an analysis of current residential densities and future residential densities necessary to provide a range of needed housing. The analysis included the identification of measures that could increase the efficiency of land uses within the Springfield urban growth boundary. The City is using the results of the analysis to develop housing policies for the Springfield 2030 plan. ECONorthwest has worked on a diverse range of housing and development projects. CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 9 RELEVANT PROJECT EXPERIENCE RALPH JOHNSON Design and Connectivity Plan for North 7th Avenue Corridor, Bozeman, Montana A study and recommendations were developed and written in collaboration with Winter & Company and Marvin & Associates. The study first focused on determining, through workshops, public meeting, interviews and a survey, the perceived needs of the businesses and residents within a quarter of a mile of North 7th (a walkable distance). Initially a community workshop was held in which residents and business representatives spoke, discussed, and sketched what they perceived to be the strengths of the existing conditions and their aspirations for the future. From the information gathered and a rigorous study of existing conditions preliminary goals and concept alternatives were developed and presented to the City of Bozeman’s Bicycle Board, Beautification Board, Design Review Board, North 7th Property Owners Organization, the Review Committee and residents of the adjacent neighborhoods. In response to the feedback from these meetings the community goals were refined and alternatives were both narrowed and made more responsive to community feedback. This was followed by a third round of presentations and discussions leading to a final proposed “Design Framework” which was again presented to the same groups. Following this final set of review comments the consultants developed the “Corridor Design Synthesis” and “Implementation Actions” for presentation to the various community groups and City Commission. In response to this final review and final city staff recommendations the document was completed and presented to the City. Building From the Best of the Northern Rockies Building From the Best of the Northern Rockies, a text, researched and written by Professor Johnson focusing on the best development practices in the Northern Rockies includes numerous case studies of successful affordable housing policies and strategies in Billings, Bozeman, Great Falls, and Missoula, Montana, Jackson Wyoming, Boise and Sand Point, Idaho as well as Boulder and Denver, Colorado. In addition to these and many other case studies the text includes policy recommendations conceived to achieve similar successes in the region. RANDY CARPENTER Land Use Planner, Northern Rockies Program Responsible for designing and managing Northern Rockies Program community assistance and research projects. These efforts included growth analyses, fiscal analyses, comprehensive planning, community trainings, and the design of land use regulations. Land Use Planner, City of Sioux City, Iowa Responsibilities included subdivision review, City Board of Adjustment, and capital improvements planning. Land Use Planner, City of Mason City, Iowa Responsibilities included subdivision review and City Board of Adjustment. 10 | ECONorthwest Our references have been notified and are prepared to discuss our team members’ performance on these projects. We are confident they will positively reinforce the information put forth in this proposal. City of Bozeman, Montana State University Ron Brey, Former Assistant City Manager406-586-0638 | ronaldbrey@yahoo.com Population of Jurisdiction: 36,000Project Dates: November 2005 – July 2006 The Sonoran Institute Dennis Glick; Future West Consulting (Former Director, Northern Rockies Office, Sonoran Institute)406-587-2974 | dennis@future-west.org Project Dates: June 2006 – September 2007 City of Seattle, WALaura Hewitt Walker Strategic Advisor of Housing, Planning DivisionDepartment of Planning and Development 206-684-0429 | laura.hewitt@seattle.govPopulation: 652,405 Number of Employees: Approximately 10,000Project Dates: October 2013 - Present City of Wilsonville, OR Kristin Retherford, Economic Development Manager, City of Wilsonville503-570-1539 | retherford@ci.wilsonville.or.us Population: 19,262Number of Employees: Approximately 395 Project Dates: July 2013 - Present City of Austin, TXMark Yznaga, Policy Advisor 512-657-4762 | markyznaga@me.com Population: 780,000 Number of Employees: Approximately 27,913Project Dates: July 2013 - Present City of Newport, ORDerrick Tokos Community Development Director541-574-0626 | d.tokos@newportoregon.gov Population: 9,989Number of Employees: Approximately 360 Project Dates: November 2010 - June 2011 RALPH JOHNSON CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 11 BUDGET BUDGET Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Labor Expenses $/Hour Project Launch CAHAB Work Program Policy Framework Program Assessment Practice Research Evaluation and Economics Recommend and Report Hours $% of Budget ECONorthwest Project Director (Farkas)210.00 15 5 5 5 5 5 10 50 $10,500 21% Project Manager (Moore)180.00 10 25 5 10 10 10 70 $12,600 25% Analyst (Rundell)140.00 10 10 5 25 $3,500 7% Analyst (Goodman)140.00 5 10 5 20 $2,800 6% Economist (Wilkerson)140.00 10 5 15 $2,100 4% Reseach Assistant 65.00 10 20 20 50 $3,250 7% Sub-Total 25 30 25 35 35 25 55 230 $34,750 70% Planning Consultant Randy Carpenter 150.00 5 16 5 5 10 41 $6,150 12% Planning Consultant Ralph Johnson 150.00 5 16 5 5 10 41 $6,150 12% 0 $0 0% Sub-Total 10 32 10 10 0 0 20 82 $12,300 25% Non-Labor Expenses Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Expense Totals % of Budget Travel $400 $1,000 $400 $400 $2,200 4% Reproduction/Printing $50 $50 $150 $250 1% Computer/Data Expense $0 0% Communications $0 0% Misc $0 0% Total $450 $1,050 $400 $0 $0 $0 $550 $2,450 5% Totals by Task Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Total Labor $6,450 $10,350 $4,800 $7,150 $4,150 $3,850 $10,300 Direct Expense $450 $1,050 $400 $0 $0 $0 $550 Total by Task $6,900 $11,400 $5,200 $7,150 $4,150 $3,850 $10,850 % of Total Budget 14%23%11%14%8%8%22% Summary of Expenses Total Labor $47,050 70% Total Non-Labor $2,450 5% Total Budget $49,500 100% HOURS BY TASK TOTALS ECONorthwest )'3231-'7ˆ*-2%2')ˆ40%22-2+ 12 | ECONorthwest OUTLINE OF SERVICES The following scope of work will address and accomplish the list of proposed outcomes detailed in the RFP as stated below: ▪Review and assessment of the City’s currently suspended Workforce Housing Ordinance (WFH). ▪Review and assessment of the City’s Planned Unit Development Ordinance with regard to points awarded for affordable housing. ▪Provide recommendations regarding the efficacy of the WFH ordinance and PUD ordinance. ▪Provide recommendations on the appropriateness of an Inclusionary Zoning program for the City of Bozeman. ▪Provide alternatives to current City policy. ▪Analyze affordable housing outcomes associated with recommended policies. ▪If the consultant/firm feels that additional tasks are warranted, they must be clearly identified in the proposal. We have organized these work items into a scope of work outline that integrates the project management, substantive work elements/tasks, and community engagement as follows. Task 1: Project Fine-Tuning and Launch The ECONorthwest team will meet with project staff to jointly develop a refined work program and schedule for the project, outlining key meetings with stakeholders, city decision-makers, and the Community Affordable Housing Advisory Board (CAHAB). At this meeting we will identify a list of documents, reports, and data that will serve as our analytic foundation. The city has set a high bar for community outreach and transparency that this project must continue to meet. We will work with the staff to create a communications plan to keep past, current, and future stakeholders apprised of the strategy and implementation efforts – as well as to disseminate project materials. We will coordinate with the City and with the CAHAB to work within their existing communication channels to provide these individuals, groups, and businesses with the information they need to be understand, engage in, and provide feedback to the project and its recommendations. Task 2: CAHAB Work Program Development and Meeting FacilitationIt is expected that this effort will work closely with the CAHAB. This task will develop a role, process, and expectation of the CAHAB as part of this project. The goal of the task will be to create a work program, agendas, and schedule for the CAHAB that allows them to review and respond to the work product in reasonable and timely manner. We will also work with the city to decide on the proper role of the consultant team in the facilitation of the CAHAB meetings. Task 3: Policy Objectives and Evaluation Framework We will work with the CAHAB and city staff to develop a policy framework for evaluating how existing and other affordable housing tools may achieve the city’s affordable housing goals. At a minimum, the policy framework should provide a clear description of the trade-offs between the production of affordable housing, economic competitiveness, fairness, and ease of use. Task 4: Assessment of Current Affordable Housing ProgramsThis task will review both the Workforce Housing Ordinance and Planned Unit Development Ordinances. The goal of the review will be to describe the intent and history of existing policy and to assess the specific reasons as to why the policy has not been workable. Task 5: Other Practices Research This will focus on researching other practices in affordable housing programs with specific focus on programs being used in other cities comparable to Bozeman. Our goal is to narrow the sample down to a handful of programs that might work best for Bozeman and follow up with interviews with those cities to assess the prospect of using similar tools in Bozeman. The work will identify incentives, regulations, structural pricing arrangements, and/or zoning guidelines that were successful in achieving policy goals, and the context and market fundamentals that contributed to success or lack thereof. CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 13 OUTLINE OF SERVICES Task 6: Evaluation and Economic Analysis of Selected Affordable Housing ProgramsThe team will provide policy and technical analysis needed to properly evaluate existing and proposed programs. At a minimum, it will include the application of the policy framework developed in Task 3. However, it will also likely include a development pro-forma analysis to determine the residual land value of the selected development types to understand the development perspective and impacts of affordable housing contributions. This analysis will also allow for the proper calibration of the “cost” of the affordable housing requirement relative to any cost-offsets or incentives. Task 7: Recommendations, Reports, and MeetingsThis Task will synthesize the analytical findings into an integrated set of actionable recommendations. The focus of the recommendations will be on developing an effective, coordinated, nimble approach to implementing changes to existing affordable housing programs and/or proposing a new one for the city. The recommendations will encompass key implementation constraints and opportunities setting forth the methodology, history, findings, conclusions, and recommendations of the ECONorthwest team. In addition to the technical analysis, the team will be available for a presentation (including the preparation of briefing materials) to the City Commission to discuss findings and recommendations. APPENDIX: STAFF RESUMES CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 15 PROJECT DIRECTOR Abe FarkasPh.D. American Studies, University of MinnesotaM.A. American Studies, Purdue University B.A. Political Science, Purdue University Description of ExpertiseAbe is the development services director with ECONorthwest. Abe has over three decades of experience in planning and developing a wide variety of mixed- use, sustainable projects and structuring successful public-private partnerships that have improved urban neighborhoods, downtowns, business districts, and university environments. Abe’s work at ECONorthwest, as well as his past experiences at the Portland Development Commission (PDC) and City of Eugene include developing policies and implementing programs that produce affordable and workforce housing.. Over his career, Abe has been instrumental in implementing large partnered mixed-use developments as well as smaller infill projects. These include the Brewery Blocks in Portland’s Pearl District, South Waterfront in Portland, Westlake in Seattle, Broadway Place in Eugene, and a hotel/conference project in Salem. He has assisted in place-making efforts across the country, in communities as diverse as Los Angeles, Indianapolis, Tulsa, Baton Rouge, Austin, Billings, Dallas, Minneapolis and Jean Lafitte. Abe is an active member of ULI and a former national board member of IEDC. Past Positions ▪President, The Farkas Group, Inc. ▪Development Director for the Portland Development Commission ▪Planning and Development Director for the City of Eugene, OR ▪Economic Development Manager for the City of Seattle, WA ▪Director of Community Development and Planning in Fort Wayne, IN Relevant Experience ▪Public-Private Partnerships in Portland Negotiated several public-private partnership agreements which led to the development of numerous sustainable development projects. These include Portland projects such as: The Brewery Blocks, the Oregon Clinic, Ecotrust, Museum Place, and Vanport Square. ▪South Waterfront Economic Development (Portland, OR) Negotiated the largest economic development agreement in Portland to date. Led the City in securing commitments from the private sector and Oregon Health Sciences University for 36 acre, $2 billion South Waterfront Central District agreement. Components include: 2,700 mixed-income housing units of which 20% are to be affordable, 1.5 million SF of university research and clinical space; over 250,000 SF of retail; a park and greenway; structured parking; streetcar extension and an aerial tram. All buildings will meet LEED sustainability certification. The $600 million first phase is complete. ▪Dallas Transit-oriented Development (Dallas, TX) As part of a multi-disciplinary team, created realistic redevelopment programs for mixed –use, mixed income projects at five DART stations in Dallas. The development programs are designed to leverage transit investments to create thriving neighborhood centers that offer a range of housing options with improved access to transit. They include a mix of uses to create opportunities for employment and business growth. Abe led the market analysis, financial modeling, redevelopment strategy, and a strategic financing plan for each plan. ▪East Baton Rouge Comprehensive Plan (Baton Rouge, LA) Prepared the redevelopment strategy element of the comprehensive plan and assisted with development of small area plans in very low income neighborhoods which identified strategies to provide better quality housing for area residents in addition to needed community amenities. KEY PERSONNEL RESUMES 16 | ECONorthwest PROJECT MANAGER Morgan ShookMaster of Urban and Regional Planning, Portland State UniversityB.S. Molecular Biology, University of Puget SoundCertificate in Commercial Real Estate Development, University of Washington Extension Description of Expertise Morgan Shook is a senior policy and economic analyst interested in innovative economic development strategy related to real estate, transportation, and infrastructure planning. His expertise in economic, fiscal, market, GIS, and demographic analysis has been applied to financial and policy projects for cities, counties, and ports across the State. Morgan received his M.A. in Urban and Regional Planning from Portland State University’s School of Urban Studies and Planning.. Morgan graduated from the University of Puget Sound with a B.S. in Biology. He also has a Certificate in Commercial Real Estate Development from the University of Washington. He is AICP-certified. Morgan just finished a term on the Seattle Planning Commission and just finished co-chairing a committee on affordable housing incentives for the Seattle Relevant Experience ▪Incentive Zoning Projects – examining aspects of incentive zoning pricing, land use policy, land conservation, affordable housing, and infrastructure funding for the following cities: Seattle, WA; Bellevue, WA; Kirkland, WA; Issaquah, WA; Arlington, WA; Tacoma, WA; Shoreline, WA; Tukwila, WA ▪City of Seattle, University District Rezone Analysis. As part of on environmental impact analysis evaluating changes to land juice and zoning policy, impacts to affordable housing were assessed. Mitigating strategies using the cities affordable housing programs were suggested. ▪City of Bellevue, Downtown Livability Initiative Incentive Zoning – Researched and assessed best practices for incentive zoning as part of the City’s broader Downtown Livability Initiative, which was looking to make significant updates to zoning and incentive zoning system in the downtown. ▪Seattle Housing Authority, Fiscal and Policy Analysis of Proposed Yesler Terrace Redevelopment. Provided real estate, tax policy, and affordable housing assistance for Seattle Housing Authority as part of their redevelopment strategy for Yesler Terrace. ▪Hedreen Development, Community and Economic Impacts. This project examined the community and economic impacts of a proposed Convention hotel and the unique proposal for 150 units of affordable housing included as part of the project. ▪Daniel Real Estate, Community and Economic Impacts. This project examines the kidney and economic impacts of up of multi use development that included housing, retail, office, and affordable housing. The affordable housing component used provisions of the cities incentive zoning program and new markets tax credit funding. ▪City of Seattle Office of Economic Development, South Lake Union Public-Private Investment Analysis. Researched the changes in the redevelopment of the South Lake Union neighborhood over time to identify key public actions (such as regulation changes and infrastructure investments) and analyzed the impact on housing. ▪Provided market and land use planning for the Wenatchee Valley Transportation Council’s North Wenatchee Avenue Transportation Master Plan. Developed a market and economic assessment to guide a long-term transportation plan in the City of Wenatchee. Relevant Presentations ▪Presenter, Washington Short Course on Planning. Development Incentives and Infrastructure Funding for Infill Development. 2014 ▪Presenter, Washington APA Conference. Issaquah Case Study – Creating a bold vision and planning for implementation. 2013 ▪Presenter, Public Financial Leadership Academy, University of Washington. Strategies for Fiscal Sustainability. 2013. ▪Presenter, Planning Association of Washington. A Strategic Planning Approach to Comprehensive Planning. 2013 Civic Commitments ▪Commissioner, Seattle Planning Commission. Co-Chair Housing and Neighborhoods. Term expires 2014. CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 17 ANALYST Erik RundellM.U.R.P., Portland State UniversityCertificate, Commercial Real Estate, University of WashingtonGraduate Certificate, GIS, University of Wisconsin-MadisonB.A., Geography, University of Wisconsin-Madison Description of Expertise Erik Rundell is a senior policy and GIS analyst and urban planner specializing in land use, demographic, economic and market analysis, as well as fiscal impacts and funding strategies. He works with clients to understand and address their unique challenges and develop strategies for realizing near- and long-term opportunities. Erik is actively involved in the Puget Sound planning community and currently serves on the City of Seattle Urban Forestry Commission and the Capitol Hill EcoDistrict Steering Committee in Seattle. Relevant Experience ▪City of Bellevue, Downtown Livability Initiative Incentive Zoning – Researched and assessed best practices for incentive zoning as part of the City’s broader Downtown Livability Initiative, which was looking to make significant updates to zoning and incentive zoning system in the downtown. ▪City of Tacoma, Landscape Conservation and Local Infrastructure Program Assessment – Evaluate the potential to use transfer of development rights and the Washington LCLIP incentive zoning program to incent development and the program’s potential to generate new revenue for the City. ▪City of Arlington, Landscape Conservation and Local Infrastructure Program Assessment – Evaluate the potential to use transfer of development rights and the Washington LCLIP incentive zoning program to incent development and the program’s potential to generate new revenue for the City. ▪City of Kenmore, Regional Business Zone Market Analysis – Evaluated the market for commercial and residential development types and economic development opportunities in Kenmore and made recommendation on changes to the City’s Regional Business zone to remove barriers to potential opportunities envisioned for the City and its downtown. ▪Snohomish County, 2012 Housing and Characteristics Need Report Analyzed Census and local housing data to determine the housing needs at different income levels and geographies. Developed a spreadsheet model to allow individual jurisdictions to update the housing needs analysis and trained staff on how to use the model. ▪City of Olympia, Community Renewal Area Plan – Conducted a market analysis for the feasibility development for different uses in five different subareas within the city, and analyzed the development feasibility and fiscal impacts of different development concepts within Downtown Olympia. ▪City of Seattle Office of Economic Development, South Lake Union Public-Private Investment Analysis – Researched the changes in the redevelopment of the South Lake Union neighborhood over time to identify key public actions (such as regulation changes and infrastructure investments) and analyzed the fiscal payback of infrastructure investments made by the City over time. KEY PERSONNEL RESUMES 18 | ECONorthwest ANALYST Beth GoodmanM.C.R.P. Community and Regional Planning, University of OregonM.P.A. Public Administration, University of Oregon B.A. Psychology, Hunter College, City University of New York Description of Expertise Goodman joined ECONorthwest as a planner and project manager in 2005, focusing on land use planning and policy analysis. Goodman specializes in managing and executing complex long-range land-use projects for cities and counties across the United States. Goodman’s recent projects have included: land-use comprehensive planning; economic development strategic planning; reviews of urban growth boundaries for Oregon cities; housing needs and market analysis; analysis to identify economic opportunities and employment growth; market analysis; and population and economic forecasting. She has also worked on projects involving survey development and analysis, the economic effect of transportation infrastructure, tax increment financing and implementation for redevelopment, and program evaluation. Goodman is an adjunct instructor with the University of Oregon’s Planning, Public Policy and Management program. Relevant Experience ▪Housing needs analysis to describe housing affordability issues, determine residential land needs, and provide technical analysis for a comprehensive plan update more than 20 cities in Oregon, including Eugene, Salem, Medford, and Springfield. Housing needs analysis includes: inventory of suitable employment land, an assessment of infill and redevelopment potential, analysis of national and state housing trends, analysis of local housing trends and densities, analysis of housing affordability, population forecast, analysis of demographic trends, forecast of housing needs, determination of the sufficiency of residential land, and identification of the implications of the analysis for residential development. ▪Analysis of demand for compact housing demand and potential changes to housing policies for the Municipality of Anchorage, AK. ▪Market analysis of long-term demand for housing and commercial and industrial built space in Albany, as part of a Concept Plan for the South Albany Study Area. ▪National analysis of the impact of zoning and subdivision regulations on housing affordability for the U.S. Department of Housing and Urban Development (HUD) and the National Association of Homebuilders. ▪Market analysis of the demand for affordable senior housing in Wilsonville, OR. ▪Market analysis of demand for commercial and retail space in Tukwila in support of an application to change the plan and zoning designations on a 65-acre site. ▪Surveyed Tulalip Tribal members to assess current housing preferences and determine future housing needs. CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 19 ECONOMIST Mike WilkersonPh.D. Economics and Politics, Claremont Graduate UniversityM.A. International Political Economy, Claremont Graduate University B.A. Economics, Whittier College Description of ExpertiseMichael joined ECONorthwest in 2013, prior to that, he worked for 8 years as an analyst for an Investment Bank and most recently for a Registered Investment Advisor. His areas of expertise include econometrics and applied microeconomics in the fields of real estate, banking, finance, transportation and urban economics. He has applied expertise in projects involving housing market analysis, economic impact analysis, regional and micro economic forecasting, benefit-cost analysis, development feasibility studies, and litigation support and expert testimony. He has experience in working with state agencies to create designated areas approved for alternative financing programs and working with developers to model and implement the use of alternative financing. Michael is proficient in the use of GIS and has expertise in creating statistical models that incorporate spatial temporal analysis in order to improve upon standard modeling techniques. He is an adjunct professor of economics at Portland State University. Relevant Experience ▪Produced market study for a proposed multifamily project in Beaverton, OR. The report recommended unit amenities, target tenant market, unit composition and size, and predicted market rents based off of the creation of model of over 170 local properties. ▪For the City of San Antonio, analyzed commercial development at the census block group level for the entire city. Categorized each block group with a market trajectory, projected rental rate and vacancy rate for multifamily, office, and retail product types. ▪Constructed model analyzing the market trends for the multi-family apartment market in Portland, OR. Using spatial modeling techniques, the model analyzed rental and vacancy rates, as well as investment opportunities. ▪Conducted cost competitiveness study for the City of Hillsboro in order to access how city fees and regulations impact the feasibility of various types of proposed development projects. ▪Created model to forecast future rental and capitalization rates for specific commercial property parcel located in Portland, OR for a private client’s proposed execution of a lease option agreement. ▪Conducted study to forecast the housing needs for the Southern Nevada Regional Planning Consortium (SPRPC). Modeling including forecasting the demand for housing based on employment, migration and demographic changes in Clark County, NV. ▪Modeled the financial impact of different ground lease terms and structures for a Lane County commercial property in order to determine possible disposition or future uses. KEY PERSONNEL RESUMES 20 | ECONorthwest PLANNING CONSULTANT Ralph JohnsonM.S. Architecture and Urban Design, Columbia University, NYNY, 1982Certificate Civil Engineering, Air Force Institute of Technology, Dayton, Ohio 1972Bachelor of Architecture, University of Kansas, Lawrence, Kansas, 1970 Description of Expertise Professor Johnson has taught urban design and been the director of the Community Design Center at Montana State University since 1986. In addition to teaching he has maintained an active planning and design consultancy with an emphasis on providing sustainable, contemporary and creative responses to planning issues faced by Rocky Mountain communities. In 2007 he completed a book entitled Building from the Best of the Northern Rockies which not only articulates Professor Johnson’s sustainable planning principles but illustrates, through case studies, many of the successes that have been achieved throughout the Northern Rockies. In addition to his teaching and practice, Professor Johnson is the planning consultant to the cities of Manhattan and Three Forks, Montana, communities for which he has facilitated and developed master plans, capital improvement plans and community impact analysis. Relevant Consulting Experience in Bozeman ▪Envisioning the Gallatin Valley Triangle (In the community engagement phase) ▪Sustainable Communities Case Studies (In the research phase) ▪Three Growth Scenarios for the Bozeman, Belgrade, Four Corners Triangle, 2013 ▪Building Typologies for the Northern Rockies, 2012 ▪Housing Market Trends in the Northern Rockies Case Studies, 2011 ▪Adapting “Envision Tomorrow™” as a Regional Planning Instrument for the Gallatin Valley, 2009-2012 ▪City of Bozeman, MT, Design and Connectivity Plan for North 7th Avenue (with Winter & Company), 2006 ▪City of Livingston, MT, Downtown Development Guidelines, 2005 ▪City of Bozeman, MT, Commercial Corridors Design Objective Plan (with Winter & Company), 2004 ▪Anaconda, MT, Tax Increment Financing District Design Guidelines, 2004 ▪Butte, MT, Historic Neighborhood Design Guidelines, 2004 ▪Roundup, MT, Main Street Revitalization Design Guidelines, 2004 ▪Manhattan, MT, Growth Policy, 2004 ▪Great Falls College, MT, Master Plan, 2003 ▪Helena, MT, Railroad Historic District Design & Planning Guidelines, 2003 ▪Manhattan, MT, Community Vision, 2003 ▪Bozeman, MT, Entry Way Corridor Design Guidelines, 2002 ▪Ktunaxa Nation, Mt, Perma-culture Community Design, 2002 ▪CMC Property Master Plan, City of Bozeman, MT 2001 ▪Cedar Street Master Plan, City of Bozeman, MT, 2000 ▪Montana City Master Plan, Jefferson County, MT, Commission, 2000 CITY OF BOZEMAN – AN EVALUATION OF REGULATIONS AND POLICIES RELATED TO AFFORDABLE HOUSING | 21 PLANNING CONSULTANT Randy CarpenterMaster of Urban and Regional Planning • University of Iowa, 1997 Bachelor of Arts in History • University of Iowa, 1995 Description of Expertise At the Sonoran Institute, Randy is responsible for all aspects of Program Management, including fundraising, budgeting, staff management, program planning, project oversight. Created and manage the Sonoran Institute’s Community Builders (communitybuilders.net) initiative, which helps communities make decisions about how they grow by making the connection between community design and economic development. The Community Builders initiative produces and communicates research regarding growth and market trends; it recently produced two studies regarding the future of residential development and commercial development in the Rocky Mountain West. In addition to research, Community Builders provides trainings in planning and community development for local leaders, as well as direct assistance to cities throughout the Rocky Mountain West. Recently worked with the Trust for Public Land and the Human Resources Development Council on an affordable housing development plan for the Story Mill site in Bozeman. Civic ActivitiesCity of Bozeman Design Review Committee, 2002 – 2004 City of Bozeman Planning Board, 2004 – 2006 City of Bozeman Impact Fee Review Committee, 2008 – present Gallatin Local Water Quality District, 2010 – present Relevant Experience ▪Land Use Planner, Northern Rockies Program, 2001 – 2010 Responsible for designing and managing Northern Rockies Program community assistance and research projects. These efforts included growth analyses, fiscal analyses, comprehensive planning, community trainings, and the design of land use regulations. ▪Land Use Planner, City of Sioux City, Iowa, 1998 - 2001 Responsibilities included subdivision review, City Board of Adjustment, and capital improvements planning. ▪Land Use Planner, City of Mason City, Iowa, 1997 - 1998 Responsibilities included subdivision review and City Board of Adjustment.