northeast minnesota- hwy 169 housing readiness planning

8/14/2019 Northeast Minnesota- Hwy 169 Housing Readiness Planning

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Northeast Minnesota

Housing Readiness Planning Day

August 28, 20079:00 AM to 4:30 PM

Hibbing Park Hotel

Meeting Objectives:

1. IMPROVE REGIONAL COORDINATION AND CAPACITY: Present logical optionsfor better coordination and sharing of existing and expanded housing development expertiseregionally

2. REVIEW REGIONAL HOUSING NEEDS: Provide clear overview and consolidatedsummary of recent housing market studies, including indications of need by location,income, and housing types.

3. PROVIDE FUNDER PERSPECTIVES: Share funders assessments, priorities, and visionfor funding affordable housing projects, programs and initiatives, capacity building, and

regional planning.

Meeting Structure:

1. UTILIZE AND BUILD UPON A COLLABORATIVE PROCESS: Utilize a meetingprocess and structure that strengthens a sense of common cause, builds trust, andencourages the sharing of ideas, strategies, suggestions, concerns, and creates a frameworkfor future decision-making.

Meeting Outcome:

1. RECOMMENDATIONS AND ACTION STEPS: Attendees leaving with workablerecommendations and action steps that clarify how joint plans and commitments willsupport better coordination of development efforts that lead to more affordable housingproduction.

2. CORE GROUP DIRECTION: Provide direction and support to the current and futureCore Group.

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Agenda

9:00 Welcome and Introductions Warren Hanson - Chip Halbach

9:15 Meeting Expectations Randy Lasky Meeting outline and review of agenda will be presented Review of meeting expectations

o Ground rules for meetingo Primary focus on Hwy 169 corridor way

9:20 Range Readiness Planning Randy Lasky

Role of Range Readiness planning with housing and possible intersections today Distribute working paper and new outline of organizational structure

9:40 Historical and Background Summary MHP

Summary of previous housing activities and plans. Participants will map recent housing efforts with comments within each county.

10:10 Break

10:20 Funders Panel Randy LaskyRoles, priorities, assessments, and vision for housing in NE Minnesota

Minnesota Housing, GMHF, DEED Small Cities, Blandin Foundation, MHP.12:00 Announcements

12:10 Buffett Lunch

12:50 Last half-day discussions Randy LaskySet up afternoon tracks

1:00 Group Discussion on options (2 sessions at same time)I. Regional Planning creating and finishing a regional planning processII. Regional Housing Development Capacity and Regional Coordination Options: Identify

and review elements of improved regional coordination discussion of pros and cons.This would frame the discussion to be about options, affirm suggestions from theprior conversations.

2:30 Break

2:45 Report out, discussion, and possible next steps in large group Randy Lasky

3:45 Reflections by Core Group Members Randy Lasky4:15 Evaluation and Adjournment

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A Coordinated Regional Response to Potential Large Scale Development Projects on the Iron RangeJune 2007

1

A Coordinated Regional Response toPotential Large Scale Development Projects on the Iron Range

June 2007

Situation on the Horizon

Currently there are more than twenty (20+) larger development projects at variousstages in the project development process across the Iron Range from Babbitt toCohasset. They represent the largest concentration of large-scale projects since the1970s when major taconite plants were built at key locations. The scope of theseprojects range from several million dollars to $1.6 billion dollars and in total wouldrepresent about $5 billion in potential new investment that will leverage temporaryconstruction jobs, permanent living wage jobs and other value added spin-off andsupplier opportunities as well as spur other new investment in the regional economy(See attached list of projects and scales of development).

More specifically, several of these major projects have already begun construction andothers are being positioned to move forward in the next 12-18 months. Constructionbegan this spring on the west Iron Range for Minnesota Powers Boswell 3 EnergyCenter - air emissions control environmental improvements project in Cohasset. Overthe next three years Minnesota Power will investment over $200 million and will beramping up to hire 400-800 construction and trades people to meet their developmentneeds. This decision and announcement in the spring of 2006 has now spurred localaction to anticipate and begin addressing the potential impacts and needs of thistemporary and long-term workforce situation. Just to the east is the $1.6 billionMinnesota Steel integrated mine and steel making facility proposed near the Cities ofNashwauk, Marble and Taconite. They are in the midst of completing a project

environmental review process to secure permits and are working out the final detailswith a major international investor to capitalize the project and move towarddevelopment in 2008. The project would involve 2,000 construction workers for up tofour years and then would employ 700 permanent workers. Right adjacent to theMinnesota Steel site is the proposed Excelsior Energy project which is about 6-12months behind Minnesota Steel. It is coal gasification to electrical generation projectthat is working through the states energy and environmental regulatory process andrequirements and is also firming up its major investors. This project would represent acapital investment of over $1.5 billion and could add an additional 1,000 temporaryconstruction workers and 150-300 permanent employees when operational with bothphases.

A similar scenario is going on in the far east Iron Range near Hoyt Lakes and Babbitt.Mesabi Nugget a direct reduced iron nugget plant began renovation and construction inlate winter 2007 and is working on the final details for its total capitalization of around$200 million. That project will need 400 temporary construction workers and willeventually add 100 permanent jobs as the plant becomes operational in 2010. Adjacentto Mesabi Nugget is the proposed PolyMet project a non-ferrous minerals miningcompany that would mine and process copper-nickel and other precious metals. That

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project is also in the environmental review process and is seeking permits to mine andprocess ore near Babbitt and Hoyt Lakes. PolyMet is preparing to invest $380 millionand hopes to begin construction in 2008 hiring 1,000 temporary construction workersand eventually 400 full time workers at the facility. All of these projects are of a megascale and if they all come to fruition as planned will create a major demand for workers,

housing, infrastructure and related needs. Add the other smaller projects and you havea growing demand for workers, housing and a host of other socio-economic issues thatwill need to be addressed.

As these projects have begun to come on line or getting closer to reality, there is a lot ofenergy and interest by the public and private sectors to address potential problems andtake advantage of potential opportunities. This activity and energy is occurring inpockets across the Iron Range and is not being addressed at a regional scale in allinstances. In April the Itasca Community Readiness Committee was formed and heldits first meeting with representatives from a multi-community/township affected area inItasca County. The initiative was created by Itasca County under the direction of the

Arrowhead Regional Development Commission (ARDC) to assess the readiness of theaffected communities to handle some of the anticipated issues and needs associatedwith this type of multi-year short term and long-term growth. On the east Iron Range,the East Range Readiness Committee has been meeting periodically and involves asimilar group of communities in the Hoyt Lakes area. They have largely heard updateson the projects by representatives of the companies and generally discussed possibleissues down the road.

What appears to be lacking is some form of a coordinated and facilitated regionalresponse that is Range-wide and could effectively address a number of common issuesand needs that are being raised in different ways across the Range.

Reactions and Concerns

Conversations across the Iron Range keep focusing on the same potential problemsand needs. How will we handle the influx of workers? Where will they come from andhow many and when? Will there be diversity and non-union issues? How will they behoused? What impacts will that have on the existing housing market including rental,multi-family, single family and possible creation and siting of man camps? Will theworkforce bring their families? What will that mean for education, recreation, lawenforcement, utility capacity, transportation networks, etc.? How are we positioned tohandle these major changeswill they be isolated or widespread? Do we want growthin our communityat what cost and benefit? These are a few examples of thequestions that various groups and the companies themselves are asking. The dynamicsof what is starting to evolve is not isolated. It has Range-wide ramifications and needsto be handled in a coordinated way. We need an ad hoc forum in which we canregularly communicate, focus on key issues and opportunities, avoid disruptions, andemphasize good planning so we dont pay for major mistakes later, share in developingstrategies and solutions and bring the financial and technical resources needed to solveor mitigate problems. By broadening and coordinating our efforts, we can be regionally

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proactive taking advantage of everyones desire to do the right things for the IronRange.

It needs to be recognized that the situation today is much different than back in the 70sand 80s. For example, we have a workforce shortage of a variety of skilled and

unskilled abilities today and a migratory workforce that is as diverse as we have seensince the Range was populated. We are seeing a steady increase in retirements in themining industry and other public and private businesses that is adding additionalpressure to workforce needs. The number of temporary workers as a whole will belarger than was experienced two to three decades ago. We now have land use plans,zoning and health regulations that were non-existent 20-35 years ago. Obviously, this isnot the same situation as before and will require new solutions and adjustments today.

Coordinated Regional Response Framework for Action

It is proposed that Iron Range Resources take the lead in establishing a Large-Scale

Projects Regional Response Team which would be responsible for an organizedregional response that will build on the initiatives already underway in Itasca County andthe East Range and within individual communities but will broaden and strengthen theseefforts as just one part of a comprehensive and coordinated response.

To be effective, it is proposed that the organizational structure or framework consist of aLeadership Team of state and regional leaders including elected officials and keystakeholder groups; a technical Strategy Team comprised of the leaders of various stateand regional planning and development agencies and groups with a communicationsresponsibility tied to its mission; and the initial creation of four specific sub-teams thatwill concentrate on key issues that have been identified to date. Chairs of the sub-teams would also meet with and become members of the Strategy Team. The sub-teams would consist of a Projects Team of company representatives, Workforce Team,Housing Team, and a Community Resources and Readiness Team which will address anumber of issues including public infrastructure needs. More sub-teams can be addedas needed in the future. These groups will require ongoing facilitation to organize andkeep the groups focused and productive.

A steering committee has developed this model based on a similar approach usedduring the closure of LTV Mining in 2001 and it proved to be an effective tool to developfocus, communicate, coordinate and deploy resources, and accomplish key objectivesas defined by the leadership involved. (See organizational chart). The approachemphasizes the need to have a balance of being inclusive but remaining productive.Draft purpose statements and an initial list of participants have been developed tosupport and clarify key roles and responsibilities as a starting point for more discussionof this model. (See attached Organizational Chart and Purpose Statements). The nextstep will be to finalize and implement the framework. A meeting of the Strategy Teamwill be convened by Iron Range Resources to take the next steps.

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Next Steps and Call for Action

To begin implementing this approach will require a couple of things to happen. First, wewill need to have the support and resolve by Iron Range Resources to lead this effort.

Secondly, we will need to assign or allocate resources to hire a facilitator to coordinatethis initiative and engage the leadership. Third, we will need to make initial contact withproposed participants and conduct the first meeting of the Strategy Team and decidethe next steps. This is a great opportunity for IRR to Call for Action and be proactive inorganizing and leading this supportive initiative.

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Updated: 8/8/07

Large Scale Projects Response Team Purpose Statements

Mission

To be an ad hoc forum that will focus on, coordinate and address common but critical issues related to the siting and devegional development projects across the Iron Range. The response team approach will be multi-faceted and involve regional

meet as needed to anticipate major problems, issues and opportunities, develop shared strategies and solutions, and focus tech

efficient and effective, targeted response benefiting the Iron Range.

Leadership Team

Will serve as a steering committee of key elected officials and public/private stakeholders that would meet as necessary to gui

resources, review progress and communicate with the media as appropriate.

Strategy Team

Will serve as the technical team of regional and local resource professionals that will develop, communicate and facilitate

cooperation with the Leadership Team and specific Functional Sub-Teams to be named. Day-to-day communication will be of the Functional Sub-Teams will serve on the Strategy Team.

Functional Sub-Teams

A. Project TeamTo be largely comprised of the affected companies with projects underway or planned and other supporting resource

cate development needs, provide critical information for community planning and help respond to common problem

ner.

B. Workforce TeamTo identify the number, skills, sources, timing and gaps necessary to define and coordinate strategies for adequate wo

C. Housing TeamTo strategically accommodate residential growth short and long-term across the Iron Range.

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Updated: 8/8/07

Large Scale Projects Response Team Purpose Statements (contin

D. Community Resources and Readiness TeamTo assess community readiness and define how well communities will be able to address potential impacts related to

their areas. Specific areas of need will include but are not limited to land use and availability, water and sewer servic

health and public safety, and community facilities. They will assess and identify needs and funding to accommodate

long-term.

E. Opportunities Development Team

To maximize local and regional business development and new regional wealth retention by evaluating potential larg

supplier, indirect spin-off and value added business development needs and opportunities, and communicating this

entrepreneurs, investors and local and regional development, recruitment and financing professionals. Coordinate a

land and real estate options, deal structuring and financial packaging, risk assessment and management, and growth

and new businesses.

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Chisholm

SAINT LOUIS

AITKIN

KOOCHICHING

CARLTON

ITASCA

LAKE

Biwabik

EvelethHibbing

Duluth

Hoyt Lakes

Cloquet

Grand Rapids

Hermantown

Virginia

Ely

International Falls

Two Harbors

tu71

tu2

tu53

tu169

tu53

tu169

tu169

1

665

46

23

38

18

200

217

73

169

27

286

47

33

23245

289

73

73

11

18 65

Northeast

CANADA

Lake Supe

0 20 4010Miles

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UPM BlandinPaper Co:

ThunderhawkProject & Unit 7

Expansion

ExcelsiorEnergy:

ProposedPlant

HibbingTaconite

MinnesotaSteel

Industries

KeewatinTaconite

LaurentianEnergy

UnitedTaconite

Laurentian

Energy

USSMinntac

Mine

Mittal SteelMinorca

Mine

NorthshoreMining

Furnace 5Restart

PolyMetNorthmetDeposit

Development

PolyMetPlant

MesabiNugget

FranconiaMinerals

Birch LakeProject

Excelsior EnergyProposed Plant

7365

169

37

169LAKE

SAINT LOUIS

ITASCA

Hibbing

Babbitt

Hoyt Lakes

MountainIron

Virginia

Gilbert

Eveleth

S

Buhl

Nashwauk

Coleraine

Biwabik

Grand Rapids

Chisholm

Bovey

Keewatin

53

169

1

135

61

38

65 16973

Proposed Mesabi Range Economic Development Projects,Northeast Minnesota

S

0 4 8 12 162Miles

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9/4/2007 1

Northeast Minnesota Housing Studies

Koochiching County Housing Study and Action Plan

Prepared forKoochiching Housing CoalitionArrowhead Regional Development Commission, June 2005

Housing Market Analysis and Demand Estimates for Hibbing, Minnesota

Prepared forHibbing Housing and Redevelopment Authority

November, 2005

Maxfield Research Inc.

Housing Impact Analysis

Conducted forthe Greenway Area Business Association, Itasca Development

Corporation/Jobs 2020 and Itasca County Housing and Redevelopment Authority

Rebecca Cohen, December 2005

Housing Market Analysis and Demand Estimated for Grand Rapids, Minnesota

Prepared forHousing and Redevelopment Authority of Grand Rapids, City of Grand

Rapids, Independent School District 318, Grand Rapids, MN

Maxfield Research Inc., September 2003

Ely Area Housing Study

Prepared forCommunity Economic Development Joint Powers Board

Community Partners Research, Inc. May 2002

Ely Area Housing Study Update 2002Hired by Community Economic Joint Powers Board, consisting of the cities of Ely andWinton, the Town of Morse and Independent School District #696

Community Partners Research, Inc.

City of Virginia Housing StudyA comprehensive analysis of the overall housing needs of the City of Virginia

Prepared forthe City of VirginiaCommunity Partners Research, Inc. April 2001

City of Babbitt Housing Needs Assessment

Prepared forthe City of Babbitt

Arrowhead Regional Development Commission, January 2000

Ely Area Housing Study

Prepared forthe Community Economic Development Joint Powers BoardCommunity Partners Research, Inc. January, 2000

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9/4/2007 2

City of Eveleth Housing Study

Prepared forEveleth Economic Development Authority (EDA)

Community Partners Research, Inc. Draft August 2000

City of Bigfork Housing Study

(an update of the 1999 Itasca County Housing Study)Prepared forItasca County Housing and Redevelopment AuthorityCommunity Partners Research, Inc.

1997 Housing Needs Assessment

Hibbing, Minnesota

Prepared forHibbing Housing and Redevelopment Authority

Maxfield Research Inc., January, 1998

City of Tower Limited Housing Market Study on The Need For Additional Single Family Housing LotsPrepared forthe City of Tower

Arrowhead Regional Development Commission, September, 1998

City of Duluth Housing Needs Assessment

Prepared forDuluth Housing Study Committee

Arrowhead Regional Development Commission, Fall 1998

Cook County Housing Assessment

Prepared forCook County Resource Development CouncilArrowhead Regional Development Commission, May 1997

Northeast Minnesota Regional Housing Assessment

Prepared forIron Range Economic Alliance

July 1, 1995Arrowhead Regional Development Commission

Rental Housing Market Analysis and Demand Estimates for Selected Areas in the St.Louis County, Minnesota Housing Partnership

Prepared for St. Louis County Housing and Redevelopment Authority

Maxfield Research Group Inc. January, 1994

Northeastern Minnesota Comprehensive housing Affordability Strategy

Prepared fora Five County Consortium:

Cook Itasca Koochiching Lake

Saint Louis

Nancy Freeman and Associates, November 1991

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Other publications:

2006 Community Report, Socioeconomic Indicators, Itasca County Area

2003 State of Housing, Housing Facts and Figures, St. Louis Co and City of DuluthCensus 2000, Census Report, Mapping & Facts, A Geographical Portrait, St. Louis Co.

Itasca County HRA Strategic Plan, 2005Regional Housing Affordability, April 2005, Minnesota Housing PartnershipSt. Louis County Housing Snapshot, 2007

WORKER HOUSING, Temporary, St. Louis County Land-Use Requirements, 2007

Mesabi Iron Range Large Scale Development Projects, May 2007

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Housing Plans Summary, Themes, & Opportunities

Minnesota Housing Partnership reviewed recent housing plans to see what themes emerged and

provide those themes for your own decision-making. The themes which emerged, whileinteresting should not be conclusive without updates from a more current regional study.

1. Housing rates (cost and density) follow amenities and jobs.a. Communities with physical amenities (lakes, rivers, theatres) have provided more

housing developments, followed by communities with job growth. High amenity

communities are more likely to develop housing and tend to see low-income housing

as secondary. Communities with job growth tend to want a mix of housing.

b. Homes in communities with a high number of amenities and high percentage of jobsto residents receive home sale prices almost double that of homes in low employmentand low amenity areas.

c.

Very few communities see manufactured homes or subsidized apartments as a seriousoption.

2. The condition of older homes are not known.a. While there are funds for rehab work, even at a reduced interest rate homeowners

may not see rehab as a financially viable option.

b. Various capacity levels or desires in enforcing housing standards may lead some tothink livable housing is not a community issue.

3. Small coordinated developments are as important as large developments.a. When looking at affordability, small coordinated housing developments across

communities yield cost saving that enable families with lower incomes to purchase orrent.

b. Developments that include single-family, multi-family, and rental properties areviable in communities with increasing employment levels.

4. Many communities consider low-income housing a secondary market.Opportunities (social and economic changes)

1. Anticipated job growth along Hwy 169 will fuel need for temporary and long-term housing.2. The creation of strong working relationships that go beyond history, geography, or issue.3. Federal rural policy is putting less emphasis on commodities and more toward community

development issues.4. Staff from regional and statewide entities are ready to be part of a regional housing effort.5. Funders are ready to look for opportunities.

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Goals of Dynamic Analysis Tool1. Identify housing production capacity and identify need for

added capacity from private market, non-profit partners andpublic agencies.

2. Inform planning opportunities by housing type identifythe need for temporary construction worker housing vs. long-term homeownership and rental needs, and the possibleconversion over time that provides both temporary worker

housing and high-quality, affordable, permanent housing for theregion.3. Identify opportunities geographically assess buildable sites,

redevelopment needs and pending projects in specificcommunities within the region to shepherd and informimplementation strategies.

4. Help attract resources for plan implementation -Provideusable, accessible and informative document for communities,agencies, builders and funders. Banks, non-profit and publicfunders need clear, specific and detailed documentation and

review of local housing market data to inform funding decisionsand investments.

5. Support further planning, and local and regional

collaboration through coordinated planning effort RangeReadiness process engages stakeholders from across the region,supporting collaborative thinking, strategic planning, decisionmaking and collective action.

Dynamic Market Analysi

Housing Needs Assessmen

Dynamic Market Analysi

Housing Needs Assessmen

Local HousinProfessionalsIn-kind participatio

collaboration anddata coordination

Key Par

OUTCOME: Collated, coinformation feeds dynamichousing needs assessment conditions to inform housiimplementation.

ProfessionaConsultantMarket research

analysis & housinneeds assessmen

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Collaborative process saves all constituents money, streamlines research process, and creates consistent basregion to inform decision making structure and strategic local priorities.Market analysis normally costs in excess of $10 thousand per community/study the scope of this project,along the 169 planning corridor, would easily total over $200,000 and would likely lack regional context andata classification.Proposed process presents opportunity to save money, and act on a tight time-table, through local cooperadynamic modeling tool that is easily updated as new development occurs throughout the affected corridor.

Examples of Critical Baseline Planning D

Assess Existing and Projected Hous

ARDCExisting Housing Conditions

Public listingsSample of market-rate rental properties in the study region

Iron Range ResEconomic development projects with short-term and long-term employment impacts

Data Sour

Information used for analysis of housing needs based on current forecasts of population, household and employment growth in stu

the availability of housing at all income levels and housing types.

Local housing p

City/county sta

Number of new homes/lots available for development by price range

Local MLSNumber of existing homes currently for-sale by price range

Local housing pNumber and type of housing units currently in the development pipeline

MHFA

Local housing p

Current vacancies and rents among rental properties restricted to moderate- and low-income households - rental types, number of properties and contacts

U.S. CensusExisting housing supply

Benchmark Existing Housing Market Information

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Collaborative Housing Action Plan

Monitor Production Goals and Proj

Housing

VisionEstablish local

goals and

priorities

Housing

VisionEstablish local

goals and

priorities

Market

Study

Market

Study

P

S

F

Pr

P

S

F

Pr

High Need Estimate

Low Need Estimate

Housing Action

Plan

based on

documented needs,

available resources

and highest local

priorities

Resource

Inventorykey players,

local capacity,

decision-making

structures,

resources

Resource

Inventorykey players,

local capacity,

decision-making

structures,

resources

Production

GoalsSite & housing

type specific

Production

GoalsSite & housing

type specific

Develop

projects and

update on

progress

Planning Process

90 Days Ongoin

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Situation Review pg 1

Delivery capacity to administer Gap information market analysis Move out silos Impact on retirees Funders interested Amenities

Funder Panel Question/ Answer pg 2, pg 3

Levy program flexibility? Staffing capacity develop joint powers or regional approach MHFA flexibility? loan vs. grant for capacity building Situation non-traditional urgent hereso is Southern Minnesota

Low income displacement Impact policy makers Move coordination more competitive Secondary market pooling/ investments model? Multi-County HRA? Urgency Temporary Housing Response

Anticipate and address permanent housing needs

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Private and Public Structure pg 1

1) Use existing structure mix roles and responsibilities:o Staffo $$$o HRAo CAPs

2) Model develop planning tool:o Private

3) Private versus Public:o Need informationo Coordinateo Red Tape access to resources/ permits

Structure (Option) pg 2

JPA Inter-community collaboration Six to twelve months - R.R. housing sub group jointly formed R.R. Concerns:

o Temporary worker housingo Impact on existing affordable housing

Vision pg 3

Moving from dependence to self-reliance and regain interdependency Resources: Fund and implementation Incentives: result orientated

Next Steps pg 4, pg 5

1) Education/ Community decision makers at all levels2) Plan Define:

o Flowo Governmento Budget

3) Get buy-in:o Privateo Publico Employers

4) Get local lenders involved5) Results - projects in the ground

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6) Celebrate good work:o P.R. Share combined information / plan

7) Business plan:o Need based

Pros pg 6, pg 7, pg 8, pg 9, pg 10

1) Reduce Duplication2) Efficiency in investment3) Broader picture4) Efficient delivery/ communication/ information5) Share Expertise6) Prioritize project7) Institution commitment8) Pooling political base (see page 16)9) Cross ideas10) Adv. opps of timing/ economic expansion11) Id gaps:

o Deliveryo $$$o Need

12. Consistent with value of funders self-selection13. Willing participation or non-players14. Improved access to capacity15. Excitement (sustain)16.

Local Regional Leadership -----Choice17. Voice in program/ funding policy development18. Go to group for information/ go to private sector for knowledge19. Other existing culture of JPA:

o Climate of Urgencyo Models IRR sub-regional

20. Funder incentives21. Range wide ID sites and Opps.

Challenge pg 11, pg 12, pg 13

1) Credibility Private Public Partnershipo Personalityo Performanceo Historyo Membership/ Leadership

2) Decision Making Convince Policy Makers Political Will3) Admin Funding Meeting Cost

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4) Past precedent - unknown political willCompetition econ + private vs. public

5) Lack of vision plan?6) Self-reliance

Shift from employer $7) ?Existing funding sources/ priorities8) Geography real and perceived

o Mine Rightso Land Ownershipo G.R. to Ely??? 132mi., 16,000 smo Short Hwy 169 Long Multi and Coo Service and program delivery areao IRR sub regional planning $20 milo History past relationship

9) Non-profit status10) Funder program reg

pg 16

Engage elected officials Link housing with education thru range readiness Union labor market information

Reactions/ Themes pg 17

Todays work needs to be further within structure process:o Build optionso Displacement impactso Engage private sectoro Need quantificationo Project expediter

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Job Title Company/Organization EmailBarbara Ackerson Housing Developer Arrowhead Economic Opportunity Agency [email protected]

Gene Baker Mortgage Banker Wells Fargo [email protected] Bastian Home Away From Home [email protected]

Jannelle Bastian Home Away From Home [email protected]

Jim Berry Vice President Hurst and Henrichs MN. LTD. [email protected]

Ted Birch Verndale Custom Homes [email protected]

John Chell Executive Director Arrowhead Regiona l Development Commission jchel [email protected]

Megan Christianson Director Northern Minnesota Builders Association [email protected]

Patrick Donahue Program Director NRRI-Wood Products [email protected]

Ken Doresky Housing Development Officer Minnesota Housing [email protected]

Skip Duchesneau President D.W. Jones, Inc. [email protected]

Tarry Edington Housing Development Specialist Itasca County HRA [email protected]

Reed Erickson Director, Small Cities Program DEED [email protected]

John Fedo Economic Development Coordinator RLK Inc [email protected]

Dick Grabko Principal SEH [email protected]

Leah Hall Planner Arrowhead Economic Opportunity Agency (AEOA) [email protected] Hawkins SR Analyst Economic Development Minnesota Power [email protected]

Jennifer Hawkins Minnesota Power [email protected]

Dana Hiltunen AEOA [email protected]

Eric Howe Mayor City of Palisade [email protected]

Andy Hubley Division Director ARDC [email protected]

Mary Ives Real Estate Developer Ives Realty [email protected]

Bob Johnson Boswell Unit 3 Manager Minnesota Power [email protected]

Ellery July Vice President of Operations MHP [email protected]

Diane Larson Executive Director Itasca County HRA [email protected]

Steve Nelson St. Louis County [email protected]

Nancy Norr Minnesota Power [email protected]

Duane Northagen Community Economic Development CoordinatoCity of Hibbing [email protected]

Sandy O'Fallon KOOTASCA Community Action [email protected]

Jim Paske Executive Director HRA of Virginia [email protected]

Devon Pohlman Minnesota Housing [email protected]

Catherine Sampson Director-Area Agency Aging Division ARDC [email protected]

Barb Sanderson Itasca County and Grand Rapids HRA Boards [email protected]

Andrew Schlack GMHF [email protected]

Jill Schubert Director GRACE House of Itasca County [email protected]

Gary Shields Verndale Custom Homes [email protected]

John Sloan City of Coleraine [email protected]

Gaylene Spolarich Clerk City of Palisade [email protected]

Wayne Stave Verndale Custom Homes [email protected]

Donavon Thronson Home Away From Home [email protected]

Tammy Thronson Home Away From Home [email protected]

Rick Utech Community Dev. Specialist Itasca Economic Development Corporation [email protected]

Richard Walsh Community Dev Rep Iron Range Resources [email protected]

Scott Zahorik Director of Asset Development/Housing KOOTASCA Community Action, Inc. [email protected]

Northeast MinnesotaHousing Readiness Planning DayAugust 28, 2007 * Pre-Registered Attendees

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FOR IMMEDIATE RELEASE

August 1, 2007

Contacts:

Warren HansonGreater Minnesota Housing Fund332 Minnesota Street - Suite 1310-EastSaint Paul, MN 55101800.277.2258, ext. 107 | 651.221.1997, ext. [email protected] | www.gmhf.com

FORECLOSURES: TWICE AS MANY AS WE THOUGHT IN OUTSTATEMINNESOTA?

The wave of foreclosures swamping greater Minnesota may be twice as large as

previously reported by national studies, housing officials heard at a recent GreaterMinnesota Foreclosure Crisis Summit in St. Cloud.

More than 60 community leaders from outstate Minnesota gathered in Saint Cloud tohear the results of a new study documenting that foreclosures in Minnesota areoccurring at twice the rate previously being reported to Congress and otherpolicymakers. The summit was convened by Greater Minnesota Housing Fund, astatewide non-profit affordable housing organization.

This newest study reveals what was an invisible epidemic of foreclosures in GreaterMinnesota, said Warren Hanson, president of Greater Minnesota Housing Fund. Wenow see that the foreclosure crisis extends to every corner of the state and hurts bothfamilies and neighboring property owners, said Hanson.

The new study quantified for the first time the number of actual sheriffs sales offoreclosed properties county by county in Minnesota1 in 2006. It found a stunning11,207 foreclosures statewide nearly double the 5,995 reported in a national study2conducted by RealtyTrac, a leading provider of real estate industry data, over the sameperiod.

The study, which covered the 80 counties outside the Minneapolis-St. Paul metropolitanarea (Greater Minnesota), was commissioned by Greater Minnesota Housing Fundand prepared by HousingLink, a Minneapolis-based research organization that providesinformation to housing organizations and policymakers. To assure the integrity of thestudy, researchers contacted officials in each of the 80 counties of greater Minnesota tocollect actual sheriffs sale datathe first time that such a study has been completed. It

1Data is for 80 counties in Minnesota; seven of 87 counties did not provide data for the study. The full study is available at

http://gmhf.com/foreclosure.pdf.2 More Than 1.2 Million Foreclosure Filings Reported in 2006. , available athttp://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=1855&accnt=64847 )

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complemented a similar 2007 study on foreclosure trends in the seven-countyMinneapolis-St. Paul area completed by Housing Link for the Foreclosure PreventionFunders Council, a collaboration of Twin Cities area affordable housing funders.

Previously, data on Minnesotas foreclosure rates depended on nationally-publicized

foreclosure reports which cite RealtyTrac data, a national provider of real estate data.The two new Minnesota based studies highlight that the foreclosure crisis in Minnesotamay be much worse than many officials realized.

Greater Minnesota foreclosures were up dramatically from 2,707 in 2005 to 4,168 in2006. Based on first quarter 2007 foreclosure figures, Greater Minnesota Housing Fundand Housing Link project that total foreclosures will reach 8,721 in Greater Minnesota in2007. The 2007 projected rate of foreclosures varies widely across the state, with ratesranging from 1 in every 1000 households in foreclosure in some rural counties to morethan 2 of every 100 households in the hardest hit counties. Foreclosure rates tend to behighest in the counties that adjoin the Twin Cities metropolitan area. For example,

approximately 3 of every 100 households in Chisago and Isanti counties are projectedto be in foreclosure in 2007.

Foreclosures often result from what are called subprime loans and predatory salespractices. Not all subprime loans are predatory, University of Minnesota housing-studies professor Jeff Crump told the group in St. Cloud, but nearly all predatory loansare subprime.

Predatory practices include lending without regard to borrowers ability to pay, failing toverify borrowers income, churning or repeat refinancing, charging excessive fees, andhigh-pressure sales and marketing. Predatory loans, says Crump, are sold, notbought.

In fact, Crump said, half of subprime borrowers actually would have qualified for aprime loan. There are a lot of people who paid more for their mortgage than they shouldhave paid.

Meanwhile, subprime loans are clearly associated with increased foreclosure, saidCrump.

According to Home Mortgage Disclosure Act (HMDA) data, subprime loans representabout 25 percent of all loan originations in small communities around Minnesota andsurpass 40 percent in several counties 47 percent in Faribault County in 2005, forexample, according to Crump.

The national wave of subprime mortgage foreclosures has resulted in hardship forthousands of families throughout the state, said Hanson.

Foreclosures can devastate family finances. Following foreclosure, many families aredisplaced from their neighborhoods and communities, and their credit ratings are

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irrevocably damaged.

Moreover, foreclosures can result in abandoned properties that may reduce the value ofnearby homes and adversely impact entire neighborhoods.

Local governments are feeling the pinch from rising foreclosures. Some city officialsreport having to mow the lawns of foreclosed homes where lenders have abandonedtheir responsibility to maintain the properties.

A recent report by the U.S. Congressional Joint Economic Committee3 estimates thatthe combined costs of foreclosures for all stakeholders borrowers, lenders, city andlocal governments, and neighboring homeownerscan be as high as $80,000 perhome.

What should be done about the growing foreclosure crisis? Its an issue that defiessimple solutions, said Mike Haley, deputy commissioner of the Minnesota Housing

Finance Agency. Haley outlined ways in which the state may be able to help includingenhancing the current foreclosure prevention and homebuyer counseling resourcesavailable to all state residents. While Minnesota has a strong network of nonprofitforeclosure prevention counselors, the system is being strained by a record volume ofassistance requests from struggling homeowners.

A conference participant suggested that late payment notices from lenders shouldinclude the contact number for a local foreclosure counseling agency. Homeownersprefer to talk to someone from Minnesota who can help them understand their optionsbefore they contact the national call center of a bank, said one foreclosure counselor inattendance.

Julie Gugin, executive director of the nonprofit Minnesota Home Ownership Center,noted that homeowners facing the prospect of foreclosure can contact the Center at866-462-6466 or online at http://www.hocmn.org/map.cfm?pageID=7 for referrals toforeclosure prevention services in their community. However, to provide those serviceseffectively, more financial counselors are needed, particularly in areas where numbersof foreclosures are increasing.

Another conference participant noted that lack of information is a significant barrier toaddressing the foreclosure problem, noting that we need better data and more frequentdata on foreclosures so we can track and respond to the problem.

Its an issue that wont go away. Our research suggests that with flat or depreciatinghome values expected to continue, the foreclosure surge is nowhere near the end, saidMelissa Manderschied, a land-use attorney with Kennedy and Graven in Minneapolis.

3 Sheltering Neighborhoods from the Subprime Storm, Joint Economic Committee of the U.S. Senate, March 2007,http://jec.senate.gov/Documents/Reports/subprime11apr2007revised.pdf

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To address the balloning foreclosure crisis in greater Minnesota, Greater MinnesotaHousing Fund is partnering with key stakeholders and affordable housing funders todevelop strategies and responses to assist families and communities confrontingforeclosure. GMHF and its partners will monitor state-wide foreclosure trends and data,work to expand the foreclosure prevention counseling programs and resources

available to families, and provide assistance to cities and towns facing a growingnumber of vacant and/or blighted properties due to foreclosure.

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Founded in 1996 by The McKnight Foundation and the Blandin Foundation, GreaterMinnesota Housing Fund is a private, nonprofit organization that supports the creationof affordable housing throughout the 80 counties outside of the Twin Cities metropolitanarea. By combining its resources with funds from other private and public organizations,GMHF offers financial and technical assistance to make affordable housing initiativespossible, and develops affordable housing strategies that strengthen local communities,

promote economic vitality, and increase the health, stability and self-sufficiency of low-income and working families in greater Minnesota. Since its inception, GMHF hasprovided over $89.3 million to help create over 6,748 affordable homes worth over $774million statewide.

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FOR IMMEDIATE RELEASE

For more information contact:

Northeastern Minnesota Leaders Come Together toPlan for Incoming WorkforceMeeting Marks the Beginning of New Approach to Planning for Homes on

Minnesotas Iron RangeHibbing, Minn. (August 30, 2007) Faced with the possible creation of over 1,700 permanentand as many as 6,500 construction jobs on the Iron Range, Northeastern Minnesotacommunities and organizations, Minnesota Housing Partnership (MHP), and the GreaterMinnesota Housing Fund (GMHF) came together on August 28th to strategize about housing

the new workforce. Fifty-four representatives from a wide array of Range communities, serviceagencies, and private businessparticipated in the meeting and showed support for creating newapproaches to meeting housing need in the area.

Our primary goal, said Chip Halbach, MHPs executive director, was to have an environmentwhere local solutions and expertise emerge with clear action steps that illustrate how to moveforward. Were pleased to report that at this meeting several initial actions were identified.

Participants agreed to first get a handle on the housing need facing the Iron Range by pursuinga dynamic market analysis developed by GMHF which will be equipped to track rapidlychanging employment projections. Acknowledging the need for urgency and timeliness asvarious industrial projects approach fruition, participants voiced the desire to complete the

market assessment in the next 90 days.

Were pleased to see so many representatives of public and private agencies uniting toaddress the housing impact of some twenty major industrial projects planned for the region,continued Halbach. A unified, collaborative approach will benefit everyone.

Many local and regional organizations have already started working together to address thepossible economic growth. One group, the Iron Range Large Scale Projects Readiness Initiativehas already organized a response process and is moving ahead to address housing,

Barb Jacobs, (651) 649-1710 ext. 117Minnesota Housing Partnership Andrew Schlack, (651) 221-1997 ext. 106Greater Minnesota Housing Fund

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infrastructure, government services, workforce and other needs arising from the realization ofone or more proposed industrial developments in the area.

I look forward to working with the housing group emerging from this meeting on helpingNortheastern Minnesota grow in a sustainable way, said Range Readiness facilitator RandyLasky. There is tremendous potential to address temporary and permanent housing needs as

we look at non-traditional and flexible ways to finance and construct a variety of market rate andaffordable housing while minimizing displacement of low income residents and the elderlypopulation. We have the opportunity and a responsibility to maximize our effectiveness bybringing all of the resources available in a coordinated, targeted, and equitable manner. In addition to needs assessment and coordination, organizations that fund affordable housingdevelopment in Northeastern Minnesota shared ideas on how the region can attract moreresources for projects. Greater Minnesota Housing Fund, the Minnesota Department ofEmployment and Economic Development (DEED) Small Cities Development Program, BlandinFoundation, Minnesota Housing, and Minnesota Housing Partnershipunderscored theimportance of regional collaboration to help address both short- and long-term affordablehousing needs through collaborative planning and project coordination.The potential for new economic development along the Highway 169 corridor brings theprospect for new workforce housing needs throughout the region. We support all efforts to workcollaboratively to address the full range of temporary and long-term housing needs said WarrenHanson, president and CEO of Greater Minnesota Housing Fund.Earlier this year, Greater Minnesota Housing Fund announced it had set aside $1 million to helpNortheastern Minnesota respond to projected housing needs related to economic expansion.As a funder, GMHF is committed to being nimble and responsive to emerging affordablehousing needs in Northeast Minnesota. Our Board of Directors feel funds need to be reservedfor well-planned projects to help strengthen communities and families and support economicexpansion and business investments on the Range, Hanson explained.

---Founded in 1996 by The McKnight Foundation and the Blandin Foundation, Greater MinnesotaHousing Fund is a private, nonprofit organization that supports the creation of affordablehousing throughout the 80 counties outside the Twin Cities metropolitan area. By combining itsresources with funds from other and public organizations, GMHF offers financial and technicalassistance to make affordable housing initiatives possible, and develops affordable housingstrategies that strengthen local communities, promote economic vitality, and increase thehealth, stability, and self-sufficiency of low-income and working families in Greater Minnesota.

The Minnesota Housing Partnership is a statewide nonprofit organization that advances thepreservation and creation of housing affordable to low- and moderate-income people as a

means of strengthening communities and families. MHP provides local governments andnonprofit housing organizations access to loans, grants, and technical expertise to plan andconstruct housing, in addition to advocating and educating people on sound housing policies.MHP's work in Greater Minnesota is primarily supported by The McKnight Foundation.

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