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3. Staff Report-Thrive Community Designations Memorandum To: Scandia Planning Commission Reference: Scandia Community Designation in Metro Council Thrive 2040— Discussion for December 2 Copies To: Economic Development Authority Kristina Handt, City Administrator Brenda Eklund, Clerk Project No.: 15486.000 From: Sherri Buss, RLA AICP, Planner Routing: Date: November 19, 2014 Background The Metropolitan Council is in the process of preparing the major policy documents that will help to guide the 2040 Comprehensive Plan update process. One of the key documents is Thrive MSP 2040, which was adopted by the Metro Council on May 28, 2014. Thrive MSP 2040 sets the policy foundations for the systems and policy plans for the region, identifies the “community designations” for each community in the region, and the land use policies that will apply to each designation for the development of Comprehensive Plans. The system plans will include Transportation, Water Resources, Parks and Housing Policy Plans. Local communities are required to develop comprehensive plans that are consistent with the policies in Thrive MSP 2040 and the regional policy plans. The information attached from the Thrive MSP 2040 document includes the current community designations for Scandia and other communities in the region, and the land use policies related to each community designation. While the City is currently designated as a Diversified Rural community, the City may consider and request a different designation. As the City’s Planning Commission and its Economic Development Authority consider Scandia’s future, the community’s designation will express its vision for the future, and influence the goals, policies, and direction in the City’s next Comprehensive Plan. The EDA members will join the Planning Commission on December 2 for a discussion about the community’s future and preparation for the next Comprehensive Plan update. This will be an important early discussion to consider the City’s future vision for the village area and the entire community, as a prelude to development of the Comprehensive Plan, land use goals and policies, and related policies. Lisa Barajas of the Metro Council staff will attend the December 2 meeting to provide information about Thrive MSP 2040, and discuss the issues and policies related to the community’s designation for the Comp Plan update. Scandia PC and EDA Thrive MSP 2040 Discussion Page 2 December 2, 2014 Scandia’s Community Designation Scandia is designated as a Diversified Rural community in Thrive MSP 2040. The City had the same regional designation for the 2030 Comprehensive Plan. The “Community Designations” chapter of Thrive, attached, describes Diversified Rural centers. These communities include a variety of farm and non-farm land uses, and typically a large proportion of the community contains agricultural uses and areas with significant natural resources. Diversified Rural Communities do not usually have municipal or regional wastewater infrastructure, and are discouraged from residential development at urban densities. Another community designation that could apply to Scandia is the Rural Center designation. Rural centers are small towns that serve as commercial, employment and residential centers that serve surrounding rural areas. Rural Centers have wastewater treatment services (municipally-owned, or connected to the regional system), and may have denser commercial and residential land use patterns than the Diversified Rural communities. Rural centers have compact geographical areas, a mix of housing densities, commercial districts within a traditional downtown district or along transportation corridors, and residential neighborhoods. Rural centers are located on the edge of the regional, and may have economic connections to the surrounding area outside the region. Key differences between the designations Key differences between the two designations are expressed in the headings used in Thrive MSP 2040: the key goal for Diversified Rural communities is “protecting land for rural lifestyles and long-term urbanization,” while the goal for Rural Centers is “Serving the rural areas as small town centers of commerce.” Differences in land use policies include the following:  Rural Centers may include densities of 3-5 units per acre, including higher commercial and residential land use densities in the commercial core area, while development patterns in Diversified Rural communities should not exceed 4 units per 40 acres. Clustering is permitted in Diversified Rural communities, but at least 25% of each development must be preserved as open space in order to allow higher densities.  Both community types are encouraged to protect existing farmland and natural resources, but Rural Centers are also encouraged to plan for efficient use of infrastructure, such as municipal wastewater treatment system, while the focus in Rural Diversified communities is on managing on-site septic systems.  Rural Centers are expected to take a stronger role in developing housing at a range of densities, and using state, regional and federal funding sources to develop life-cycle housing and affordable housing. Diversified Rural communities are typically not eligible to apply for that funding. (As background, when I was a staff person at the Council, the City needed a very strong effort from Mary Hauser, the Council Sector representative at that time, and an exemption from regional policy, in order to obtain MHFA funding and permit the Cottages development in the Village. Under the current Diversified Rural designation, the City would not be eligible for that funding.)  Both community designations are expected to plan for transportation systems that include streets, pedestrian and bicycle facilities. Scandia PC and EDA Thrive MSP 2040 Discussion Page 3 December 2, 2014 Discussion on December 2 Commission members should review the Thrive MSP 2040 documents attached—particularly the sections on Rural Diversified communities and Rural Centers. The full Thrive MSP 2040 document is available on the Metro Council website. Please be prepared to ask questions about the designations, how they may shape the comprehensive plan and implementation of the plan, and your visions for Scandia’s future.