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MINUTES New Brighton Economic Development Commission Approved Regular Meeting—June 19, 2012 7:30 a.m. Members/Liaisons Present: Paul Zisla, Mike Murlowski, Al Potter, Marie Hansen, D.L. Beach, Bruce Knight, Linda Zelm and Councilmember Mary Burg Members/Liaisons Absent: Commissioner Vivian Neumann-Walker Staff Present: Grant Fernelius-Community Development Director, Katie Bruno-Office Assistant. Guests Present: Ian Peterson and Mick Cermak representing Pulte Homes. Paul Heuer representing Stantec. Mark Ruff, Jeanne Vogt and Stacie Kvilvang representing Ehlers. Call to Order Chair Zisla called the meeting to order at 7:30 a.m., noting that he would be leaving at 8:30. It was recommended to begin with the Pulte discussion. Approval of Minutes Motion by Commissioner Murlowski, seconded by Commissioner Beach to approve the minutes from the April 17, 2012 meeting. Approved 7-0. New Brighton Exchange Director of Community Development Grant Fernelius reported that in April 2012 Pulte Homes approached the City stating that they believe there is significant demand for new homes, especially in more established markets. Ian Peterson, Vice President of Pulte Homes explained that demographics have changed since 2009. Because buyers desire to live closer to their workplace, Pulte has focused on in-fill projects. It was reported that smaller "urban village" type communities have been successful in other metro communities. Commissioner Potter questioned how New Brighton Exchange was chosen. Mr. Peterson stated that currently a project is underway in Arden Hills, and that sparked interest in New Brighton. It was reported that home builders traditionally look at location, quality of schools in the community and the employment base when considering development. Mick Cermak of Pulte Homes spoke on the following market statistics: • Housing demand continues to be the highest for in-fill locations in top-tier suburban submarkets. • There is less competition in in-fill locations. • There is significantly less demand for townhomes. • There is an excess in townhome supply on the market. Townhome pricing is significantly down, and Lender owned homes are predominant in townhomes. • The most active home buyers are young and mature families. It was reported that there continues to be a demand for move-up housing. Mr. Cermak distributed a listing of homes sold in the top selling metro communities; showing annual closings ranging from 24 to 69 for single family homes and 14-33 for townhomes. It was reported that the value gap between single family homes and townhomes has decreased since 2005. Surveys indicate that home buyers considering a new townhome often consider existing single family homes as well,pricing has changed making single family properties more attractive.