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HomeMy WebLinkAbout08-18-2025 Study Session NotesCITY OF WHEAT RIDGE, COLORADO CITY COUNCIL STUDY SESSION STUDY SESSION NOTES Hybrid – Virtual Meeting August 18, 2025 1. Call to Order Mayor Bud Starker called the Study Session to order at 6:30 p.m. 2. Roll Call Members present: Mayor Pro Tem Korey Stites, Leah Dozeman, Rachel Hultin, Janeece Hoppe, Dan Larson, Scott Ohm, Jenny Snell, and Amanda Weaver. Absent: None. Also present: City Manager Patrick Goff, Community Development Director Lauren Mikulak, Housing Manager Shannon Terrell, Deputy City Clerk Onorina Maloney, and Sr. Deputy City Clerk Margy Greer. 3. Public’s Right to Speak None. 4. 2025 Private Activity Bond Allocation The Mayor called the study session to order and announced the Council would be reordering agenda items 2 and 3 to accommodate the (Denver Regional Council of Government) DRCOG representatives who were present. City Manager Patrick Goff introduced the request from Foothills Regional Housing for the City's 2025 private activity bond allocation of just over $2 million. He noted the City has a history of designating allocations to Foothills Regional Housing, including in 2019, 2020, and 2022 for various affordable housing projects. Dayna Ashley-0Oehm from Foothills Regional Housing explained that private activity bonds allow housing authorities to create more affordable housing by accessing 4% federal low-income housing tax credits. She explained a recent legislative change that reduced the required percentage from 50% to 25%, which would allow more units to be built. For the Ridge project, they plan three phases of housing that would include senior housing, multi-family housing, and a home ownership model, with approximately $94 million in overall development costs. Councilmember Hoppe expressed appreciation for the partnership with Foothills Regional Housing and the quality of affordable housing they've brought to the community, noting the positive updates at Caesar Square Apartments. She stated this was a "no brainer" to approve. Councilmember Larson mentioned he had visited Caesar Square during a recent open house and was impressed with the staff and the high-quality renovations. He also noted the progress on the Miller Ridge development, where buildings are being prepared for demolition with proper asbestos containment. Councilmember Weaver expressed full support and appreciation for the educational efforts provided by the housing authority in recent months. Councilmember Ohm asked about the homeownership component mentioned, and Dana confirmed this would involve partnering with organizations experienced in homeownership models like community land trusts or Habitat for Humanity. Councilmember Ohm requested future updates on homeownership opportunities. Councilmember Hultin confirmed that Foothills Regional Housing is approaching other jurisdictions for contributions toward this project, including Arvada and Jefferson County. He expressed support for the alignment with the city's affordable housing strategic action plan. The Council reached consensus to assign the City's private activity bond allocation to Foothills Regional Housing for the Ridge Affordable Housing Mixed Use Project at Ridge Road and Miller Street. 5. DRCOG Regional Housing Needs Assessment Shannon Terrell, the City's Senior Housing Planner, provided an overview of housing- related state mandates and introduced Caitlin from DRCOG (Denver Regional Council of Governments) who was present to address questions. Patrick Goff noted that the multiple housing-related memos presented demonstrated the significant number of unfunded mandates placed on the city by the state and expressed appreciation for Council's support of the housing planner position. She explained that Senate Bill 24-174 requires local governments to complete a state- compliant housing needs assessment by December 31, 2026. Local governments can either conduct their own assessment or participate in a regional assessment. Wheat Ridge's existing affordable housing strategy needs to be updated to meet the requirements. Terrell outlined that DRCOG began their regional housing needs assessment effort in 2023 to establish an objective, data-driven understanding of current and future housing needs. Key findings included that the region has not produced enough housing to keep pace with population and job growth, housing supply is less than demand in almost every income category, low-income households represent the greatest need, and demographic shifts will require more diverse housing types. DRCOG analyzed five submarkets not based on city boundaries but on census data. Wheat Ridge is considered to be in the central market, with the north portion in north central. DRCOG estimates that over the next ten years, the region will need to build 223,000 housing units by 2032, with over 71,000 units needed in the central submarket alone. Wheat Ridge's share is approximately 2,400 units, which aligns with the city's local housing strategy. Councilmember Hoppe asked whether the water supply and strategic growth elements required by the bill would be addressed through participation in DRCOG's assessment. Mikulak responded that the regional housing needs assessment only satisfies the first component, and the water supply and strategic growth elements would be addressed through the city's comprehensive plan, which will include an appendix to address water planning. Councilmember Weaver questioned whether there were drawbacks to participating with DRCOG and if the city would be restricted in any way. Terrell confirmed that participation would not supersede or bind the city. Councilmember Weaver also asked about water considerations in regional planning, noting this should be addressed by legislators. Kaitlyn Service from DRCOG explained that while water is a regional issue, the legislation doesn't provide a specific pathway for DRCOG to address water elements as it does for housing needs assessment. Councilmember Ohm asked about the methodology behind DRCOG's regional submarkets and why certain areas were combined. Service explained that the submarkets are based on real-world commute patterns and census data that reflect how people make housing choices across the region. Councilmember Hultin asked how participation in the regional housing needs assessment would relate to compliance with the required housing action plans. Terrell explained that the housing action plan component is due January 1, 2028, and while DRCOG is working on a regional housing strategy, local jurisdictions would still need to update their own housing action plans for compliance. Councilmember Larson expressed concern about limited choices given state legislation, noting that some cities have filed lawsuits against these bills based on home rule authority concerns. Patrick Goff and Lauren Mikulak responded that the housing needs assessment bill aligns with the city's existing policy direction and doesn't raise the same concerns as some of the zoning-related bills. The Council reached consensus to participate in DRCOG's regional housing needs assessment to satisfy the state requirements of Senate Bill 24-174. 6. Proposition 123 Update and Expedited Review Process Shannon Terrell presented an update on the city's Proposition 123 commitment and the expedited review process. In 2023, the city committed to build 218 affordable units by 2026, and they are currently on track to build 98 units through the Ives II development. Despite falling short of their original commitment, the city has received about $3 million for the community, specifically for Foothills Regional Housing's Ridge Road project and for the city's Open Gov permitting software. To remain eligible for the second funding cycle, the city would need to develop a state-compliant expedited review process for affordable projects by the end of 2026. The expedited review process requires a decision within 90 days of a complete application for site plan submittal and applies to development projects with at least 50% affordable units at specific AMI thresholds. Terrell noted that the state is offering an early adoption incentive program of up to $50,000 for cities that codify an expedited review process by the end of 2025. The city is currently piloting the process with Foothills Regional Housing for their Ives II development, which has identified challenges related to civil construction documents and engineering timelines. Patrick Goff clarified that Proposition 123 predated many of the state housing bills and offers significant funds through the state's housing fund in exchange for committing to housing units and expedited review. Councilmember Weaver expressed support for pursuing the incentive funds since the city had already planned to implement expedited reviews. Councilmember Hoppe shared her experience from a Community Leadership Exchange where she learned that expedited review processes were significant tools for developers to reduce costs associated with holding loans during lengthy reviews. She referred to it as the "easy button" that should be best practice in all communities. Councilmember Hultin asked for clarification on whether the award would be exactly $50,000 or up to that amount and also inquired about the definition of a "project" in the context of mixed developments like the upcoming Lutheran project. Mikulak explained that a project is defined by individual building permits and site plans, and developments eligible for expedited review must have at least 50% of units deed-restricted affordable at under 60% AMI. Councilmember Ohm expressed concern about staff capacity and asked if there was a plan to handle additional workload. Mikulak acknowledged the impact on staff but noted that having clear criteria for expedited review would help manage expectations, and the new permit software would also assist. She explained that the engineering aspects of review typically take the longest, and they're working collaboratively with applicants to set clear expectations. Councilmember Snell asked about using the potential $50,000 grant for a housing linkage fee study, and Terrell confirmed this was being considered as an immediate need. Councilmember Hultin asked what happens if the 90-day review clock runs out. Terrell explained there are options for one-time extensions from either the city or the developer, and that denying an application is also a valid decision within the 90-day timeframe. The Council reached consensus to move forward with a resolution stating the city's intent to implement an expedited review policy for affordable projects by the end of 2025 to access early adoption incentive funds and maintain eligibility for Proposition 123 funding. 7. Housing Updates Shannon Terrell provided updates on the city's compliance with state housing legislation. The city has submitted compliance reports for House Bill 24-1007 (occupancy), removed parking minimums, and codified changes to ADUs. Staff has also submitted compliance reports for House Bill 24-1313 (transit-oriented communities) and certification for ADU supportive jurisdiction status. Regarding House Bill 24-1313, Terrell explained that this legislation creates a category of local governments called transit-oriented communities and requires those communities to align local zoning with regional transit investments. The state has designated five transit areas in Wheat Ridge: Arvada Ridge, Ward Station, Wadsworth, Sheridan, and Harlan, all along high-frequency transit. Terrell noted that Wheat Ridge has long recognized the importance of aligning local zoning with regional transit and has already updated zoning along major corridors like Wadsworth Boulevard and the Ward Station area. As a result, staff does not anticipate any zoning changes will be needed to comply with the new law. The next report is due at the end of next year, with full compliance required by the end of 2027. She also addressed the housing fund topic that was discussed in July, indicating that staff plans to explore this further in 2026. This discussion will include examining potential uses for the housing fund based on recommendations from the housing plan, such as gap financing for projects, NOAH preservation programs, ADUs, or first-time homebuyer assistance. Staff also wants to reengage the Wheat Ridge Housing Authority to play a more active role in shaping housing policy. The Mayor asked about the city's charter density limitation. Mikulak explained that the charter density cap is 21 units per acre in areas not exempted. Voters in around 2009 exempted Wadsworth and the train station area from this cap, which helps tremendously with compliance with the transit-oriented communities’ bill. The 40 units per acre requirement in the state law is an average over the designated transit areas, not an individual requirement for each area. 8. Building Code Update Patrick Goff introduced the building code update, noting that the city is currently using the 2018 International Building Codes and proposing to update to the 2024 codes. He introduced Renee Meriaux, the Chief Building Official with Charles Abbott, who is being reassigned but will continue to help with the code update, and Steve, who will be the new CBO. Mikulak provided an overview of the building code update process, explaining that the codes are very technical and fill about three feet of bookshelf space. She noted that the building division's philosophy is to be part of the construction team, serving as a collaborative partner rather than a barrier. The main goals for the update include ease of use for customers and contractors by consolidating administrative provisions into one place and focusing on the intent behind local amendments. Mikulak explained that they've maintained local amendments that are still relevant and important, especially those specific to the city's climate and geography. The discussion focused first on fire sprinkler requirements for residential construction. Mikulak explained that historically, Wheat Ridge has not required automatic sprinklers in single-unit, duplex, and townhome construction, though they can be optionally installed. Based on feedback, the development community and Building Code Advisory Board prefer to continue not requiring sprinklers, while fire districts have requested, they be required in all residential construction, or at minimum in townhomes. Steven Parker, the Fire Marshal from Arvada Fire District, noted that many communities in the Denver metro area are increasingly requiring residential sprinklers, including Lakewood, Broomfield, Superior, Erie, Lafayette, Golden, and Westminster. Councilmembers Hoppe, Stites, and Hultin expressed support for requiring sprinklers in townhomes, citing factors such as fire suppression needs, multi-story egress challenges, insurance benefits, and the fact that townhomes feature shared walls. Councilmember Weaver raised concerns about potential water tap requirements and fees, which Steven Parker clarified would depend on the water district and system design. Mikulak explained that if the Council decided to require sprinklers in townhomes, implementation would be delayed beyond the January 1 effective date for the rest of the code to allow water districts and developers time to prepare and to coordinate requirements. The Council reached consensus to move forward with requiring sprinklers in townhomes with a delayed implementation timeline, using the 13D system standards. Mikulak then discussed other code amendments, particularly highlighting the addition of a definition for "valuation" to clarify how building permit fees are calculated. This definition explains that valuation refers to the market value of both labor and materials in a project, based on standardized values published by the International Code Council. The Mayor asked about the calculation of use tax on building permits, which Mikulak explained is 3.5% on 60% of the valuation (representing the materials portion), though some cities use a 50-50 split. Councilmember Larson expressed concern about ensuring the public was aware of the code changes, and Mikulak confirmed they would develop a communication plan to inform contractors and customers. The Council reached consensus to move forward with all the proposed code amendments. 9. Staff Report(s) Patrick Goff indicated there were no staff reports for the evening. 10. Elected Officials' Report(s) Councilmember Hultin reported that she and Cole Hazlip had begun their tour of boards and commissions to solicit input on the update to the legislative agenda. They had already met with the IDEA committee and planned to meet with the Parks and Recreation Board and Sustainable Wheat Ridge next. She noted that people were excited about the city taking a larger role at the capital and advocating for Wheat Ridge. Councilmember Larson reported that he and Parks and Recreation Director Karen O'Donnell had presented to the Jeffco Council on Aging about developments in Wheat Ridge, including Clear Creek Crossing, Lutheran Legacy, and the Foothills Regional Housing Development. The presentation was well received. 11. Adjournment There being no further business to come before Council, the Mayor adjourned the meeting at 8:23 p.m. Korey Stites, Mayor Pro Tem Margy Greer, Sr. Deputy City Clerk