12-17-18 Planning Commission MinutesOTSEGO PLANNING COMMISSION MEETING
OTSEGO CITY HALL
DECEMBER 17, 2018
7:00 PM
Call to Order.
Chair Black called the meeting to order at 7:00 PM.
Roll Call: Chair Pam Black; Commissioners: Aaron Stritesky, Jim Kolles, Roger Mord,
Dave Thompson, and Alan Offerman; Absent: Commissioners Steve Schuck and Richard
Nichols; City Council: Council Member Vern Heidner. City Staff: City Planner Daniel
Licht and Administrative Assistant Kelly Thelen.
1. Announcements:
None.
2 Consider the following minutes:
2.1 December 3, 2018 Planning Commission Meeting.
Commissioner Stritesky motioned to approve. Seconded by Commissioner
Offerman. All in favor. Motion carried.
3. Public Hearing Item:
3.1 Amendment Section 11-17-12 Requiring Storm Shelters. (Continued from
December 3, 2018)
City Planner Licht presented the Planning Report.
Applicant, Stephen Bona, Capstone Homes, Inc., 14015 Sunfish Lake Blvd NW, Suite
400, Ramsey, present. Mr. Bona noted support for the City ordinance but wants to give
the buyer the option for the storm shelter and not a requirement.
Mr. Bona disagreed that Capstone's request is based solely on economics. Harvest Run
has single family homes at entrance and villa homes. Mr. Bona has reached out to 11
different communities and did not find another city that requires a storm shelter. A
redesign of the homes to be built in Harvest Run would be necessary for them to
comply with the storm shelter requirement. Capstone Homes, Inc. was not building in
Otsego in 2016 when the ordinance began, but can see the City had good intentions for
public safety.
Mr. Bona said villa homes are a single level living with snow and lawn maintenance that
provide architectural value and are a nice compliment to single family homes. The price
for a new home is $300,000-$400,000. The buyers are empty -nesters and are typically
looking for homes with no stairs. It is a competitive market and buyers can travel from
Minutes of the Otsego Planning Commission
December 17, 2018
Page 3
have the safe room. Mr. Bona repeated that the buyers were resistant since they had
to change the layout of the house, but they were okay with the requirement because
there was no charge to the buyer.
Commissioner Offerman questioned the prices quoted asked about Capstone Homes,
Inc.'s, cost versus Benzinger Homes. Mr. Bona said the estimate was $10,000-
$15,000. The prebuilt unit is $4,000 with added costs bring it in and do extra deep
footings. Commissioner Offerman said he found it hard to believe it is $15,000 for an
interior room the storm shelter is not outside the standard construction. Mr. Bona said
he believes the cost is correct, but the perceived value for the buyer is not there. Mr.
Bona added Capstone Homes, Inc. does not want to stop two big projects. Mr. Bona
repeated that the storm shelter is a big cost and slowing things down and losing time
because of this discussion. Commissioner Offerman said he has mixed feelings about
the storm shelter, but agreed public safety is a concern. Mr. Bona said price is not the
only issue. Commissioner Offerman replied the cost could be small and does not
believe buyers leaving Otsego is a fair concern.
CM Heidner questioned the feasibility of Mr. Bona's proposed amendment for the buyers
to have an option as the City cannot control the price charged by the builders.
Commissioner Offerman asked if the other builders modified their plans because of the
ordinance for market value. City Planner Licht said that Lennar and M/I Homes
changed plans to either split entry or full basements. Commissioner Thompson said the
split entry is shallow. Mr. Bona said Harvest Run is already graded so that makes it
difficult to regrade to half basements. The adjacent property to the east that Capstone
Homes has under contract could be changed to half basements. Commissioner
Stritesky said frost footings and concrete would be the same with added cost for floor
trusses. Commissioner Offerman added it is more money to add thickened slab around
bathroom to be a storm shelter, but you would not notice the change.
Commissioner Mord said that the basis for the storm shelter ordinance being approved
was the safety and welfare of residents during severe storms. Commissioner Mord
added there is enough creativity for developers to meet the requirement and create a
sellable home for the buyers.
Commissioner Stritesky said that cost of $10,000 for a storm shelter is about 2.8% of
house; sales could decrease, but if the requirement was made an option the builder
might not want to market it. Mr. Bona agreed that is 2.5% of new construction, but
look across the Twin Cities and note that no one else but Lakeville, who had 450
permits through November, is requiring a shelter. Mr. Bona said the profit might be
$1,000 for the storm shelter. Mr. Bona said that slab -on -grade homes are being built
everywhere and that even townhomes need basements for the perceived value. Hugo,
Minutes of the Otsego Planning Commission
December 17, 2018
Page 5
Commissioner Offerman agreed with Commissioner Stritesky. Commissioner Offerman
also said that there may be a way to transition; maybe require it as option, but an
economical option. Commissioner Offerman also agreed with Commissioner Mord's
comment that the developers are creative at finding solutions.
Commissioner Mord remarked that providing a storm shelter as an option is the same
as repealing the ordinance. Commissioner Mord did not believe there is incentive for
builders to make it cost effective. A lot of thought was made when the ordinance was
adopted for it to be a safety requirement.
Chair Black commented the buyer might be the first of many homeowners that is
making the choice for the storm shelter if it is only an option.
Commissioner Kolles agreed the public safety is the most important factor.
Commissioner Kolles said he could not imagine what he would do if he lived in a slab -
on -grade home. Commissioner Kolles said he does not believe the option to choose
whether or not to have a storm shelter is feasible. Commission Kolles said that if
$350,000 is the cost for a house then the $10,000 cost for the storm shelter is peanuts.
Commissioner Kolles asked the Commissioners to think about putting a price on family
and wondered who would the blame go on if the storm shelter is not there.
Commissioner Thompson commented he has been going to the basement the whole
time he has lived in Minnesota and cannot imagine not having a basement or storm
shelter to go to.
Commissioner Kolles replied he cannot see the complaint about the $10,000 cost for the
storm shelter and added he would not buy a house if there was not a storm shelter or
basement.
Commissioner Stritesky said it is not a commercial issue and to repeal the requirement
for the builders to sell for less is irresponsible to the community.
Mr. Bona asked for an opportunity to respond. Chair Black allowed the opportunity to
comment. Mr. Bona said it is not about cost, but it is about the market. Mr. Bona said
he does not have an answer to the question about safety, but that no one gets blamed
if storm comes and destroy the City. Mr. Bona said this ordinance is a brand new
requirement and questioned where do the regulations stop: Mr. Bona commented on
fires are higher in the City and questioned when the requirement for sprinklers would
be adopted. Mr. Bona wondered when security systems would become a requirement in
the City. Mr. Bona said to repeal the storm shelter requirement would be the best thing
for Benzinger Homes because it is hurting sales. Mr. Bona said they would to bring in
costs and build options for the storm shelter in their development to have a creative