MOTION: Churchill moved, seconded by Hadley, to approve the agenda as proposed. The motion carried 5-0.

MOTION: Churchill moved, seconded by Bergman, to approve the minutes as submitted. The motion carried 4-0 (1 abstention-Blundetto).

City Planner Tom Lovelace described the request for subdivision, conditional use permit and site plan/building permit authorization for a Culver's Restaurant. He reviewed the modifications to the site plan.

The applicant, represented by Geoff Benedict of Vanguard Construction, confirmed they are amenable to all changes to the site and landscaping plans suggested by staff.

MOTION: Churchill moved, seconded by Hadley, to recommend approval of the preliminary plat as submitted, subject to the dedication of right-of-way for all public streets abutting the subdivision and execution of the necessary cross access and parking easements. Motion carried 6-0.

MOTION: Churchill moved, seconded by Hadley, to recommend approval of a conditional use permit to allow for a Class II restaurant with outdoor seating area and drive-up window for Lot 1, Block 1, Culvers Addition preliminary plat, subject to: (a) approval of the final plat and subdivision agreement for Culvers Addition; (b) construction of restaurant, outdoor seating area and drive-up window shall be consistent with conditions set forth in an approved site plan/building permit authorization resolution. Motion carried 6-0.

MOTION: Churchill moved, seconded by Hadley, to recommend approval of the site plan/building permit authorization to allow for the construction of a 4,538 square foot restaurant facility, subject to the following modifications: (a) relocation of trash enclosure as per the traffic engineer's request and as shown on the preliminary plat; (b) elimination of one head-on parking space along the north side of the site and shifting of the

152^nd Street West pedestrian connection north 9 feet; (c) the surface parking areas along the north and west sides of the site shall reflect the design on the preliminary plat; (d) the landscape plan shall include one additional ornamental tree in the outdoor seating area and one in the southerly landscaped island, adjacent to the seating area; (e) a raised concrete curb landscaped island, with a minimum of one ornamental tree planted in the island, should be established at the pedestrian connection off 152^nd Street West; (f) the delineation of the internal pedestrian connections by means of striping or the use of alternate paving materials shall be required in the parking area. Motion carried 6-0.

Community Development Director Rick Kelley stated there have been recent changes in the affordable housing market. He introduced Kari Gill, Deputy Director of the Dakota County Community Development Agency, to address the subject.

Gill said several factors have affected the need for affordable housing, including: (1) population changes; (2) a 28% increase in new businesses in the 1990's alone; (3) wages, particularly jobs in low-paying sectors; (4) decreases in vacancy rates; (5) rental rates; (6) average sale price of single-family homes.

Gill also noted components of a good affordable development, including quality and expertise in the following areas: (1) the developer; (2) the product; (3) property management.

Prime considerations from a developer's perspective are cost, value and availability of financing. Gill pointed out that based on current construction costs, a developer is not able to build affordable housing without subsidies, and that the financing becomes very complex.

Kelley stated the City of Apple Valley is planning more active involvement in promoting affordable housing by forming partnerships with nonprofits and agencies who specialize in that arena. He also shared some of the history of legislative impacts on the situation, such as the capping of the number of Section 8 housing units and the 1986 Tax Reform Act that eliminated passive tax losses for investment property.

Churchill moved, seconded by Blundetto, to adjourn the meeting. Motion carried 6-0. The meeting was adjourned at 7:43 p.m.