Erie Planning Commission Meeting - February 23, 2024 - Affordable Housing Strategy and I-25 Gateway Update

The Erie Planning Commission met on February 23, 2024, to discuss updates on the Town's Affordable Housing Strategy, including the Housing Needs Assessment, gap analysis, and potential inclusionary housing and impact fee policies, as well as a presentation on the I-25 Erie Gateway project's planning, infrastructure, and financing. The meeting opened with routine approvals and included no public comments.

Consent Calendar

• Approval of Agenda: Unanimously approved (6-0).
• Approval of February 7, 2024 Meeting Minutes: Unanimously approved (6-0).

Public Comments & Testimony

• No members of the public provided comments. Staff member Eric Leverage, Housing Management Analyst, introduced himself, noting his background in affordable housing policy and work on the state's Affordable Housing Transformational Task Force.

Discussion Items

Affordable Housing Strategy Update

• Presented by: MJ (Housing Manager) and Eric Leverage.
• Housing Needs Assessment: Completed February 2023; the town seeks to adopt it as a policy document. Updated figures: average home price in Erie is $730,000 (2022); required income to afford median home: $173,000. Current affordable housing stock is approximately 1.3–1.4%, with a goal of 12% by 2035.
• Gap Analysis Addendum: Shows a shortage of rental units affordable at ≤50% AMI and a shortage of for-sale units affordable up to 120% AMI. In 2022, no homes sold in Erie were affordable to households at 50% AMI or less; 81% of homes sold were only affordable to households at 120% AMI or higher. For renters, 100% of households earning ≤$50,000 are cost-burdened (spending >30% of income on housing).
• Workforce Analysis: Only 7 of 20 broad industry categories have average workers who can afford median rent; no single-worker industry can afford the median home. After adjusting for 1.5 workers per household, many essential occupations (mechanics, administrative assistants, etc.) still cannot afford rent or ownership in Erie.
• Inclusionary Housing Ordinance: Staff are developing a market-based tool requiring a percentage of units in new developments to be affordable. Options for compliance: build on-site, provide buildable land, or pay a fee-in-lieu. Commissioners expressed support but concerns about fee-in-lieu being too attractive; staff noted the fee can be adjusted. Discussion included the need for clear deed restrictions balancing long-term affordability and wealth creation, and the importance of public education on affordable housing.
• Affordable Housing Impact Fee: Proposed for units already permitted (approximately 5,000 units) that cannot be subject to inclusionary zoning. Modeled after Lafayette's fee (approximately $1 per square foot). Funds would go into a dedicated affordable housing fund.
• Other Initiatives: Fast-track permitting for affordable projects (offering density bonuses up to 25%), Proposition 123 commitment (15 units by 2026), working with metro districts and annexation negotiations to secure affordable housing commitments, and applying for CDBG funds for mobile home upgrades.
• Commissioner Questions: Inquired about the town becoming a developer (staff clarified they partner, not develop), the timeline of inclusionary ordinance relative to comprehensive plan updates (spring/summer 2024), and branding of affordable housing as "attainable."

I-25 Erie Gateway Update

• Presented by: Sarah Normella, Planning and Development Director.
• Project Overview: Town owns ~255 acres of a 1,200-acre area along I-25 at Erie Parkway. Vision: create a mixed-use, higher-density destination with placemaking, job opportunities, and regional retail. A Planned Development (PD) document is being drafted for the southern square mile.
• Land Use and Design: Form-based code with densities higher than typical Erie developments. Land use categories: small lot residential, general neighborhood (townhomes, up to 3-4 stories), mixed-use neighborhood centers, commercial centers, employment areas, and open spaces. Emphasis on walkability, grid street network, and complete streets: Erie Parkway will feature a multi-lane design with auxiliary lanes for parking and bike lanes, tree-lined medians.
• Infrastructure and Financing: Major challenge: no existing water/sewer. A trunk sanitary sewer line (~$10M) and lift station are needed; design/construction likely 3-5 years out. Financing via urban renewal (TIF) in phases, starting with Phase 1 (Summerfield and part of North Station). Metro district and other mechanisms will also be used.
• Next Steps: Finalizing traffic/mobility plans with community open house in March 2024. PD document to be finalized in 2024. Staff expects development to begin in 3-5 years.
• Commissioner Comments: Expressed excitement, asked about connectivity to west (Erie Parkway beyond County Road 7), potential for interchange at County Road 10, and possibility of private property owners on the west side joining the PD. Staff noted ongoing coordination with North Station developer (CDG) and that private owners can annex into the PD.

Key Outcomes

• No formal votes were taken on the two agenda items; both were informational.
• The Commission will be asked to support adoption of the Housing Needs Assessment (with addendum) as a policy guidance document at a future meeting.
• The March 5, 2024 joint study session (virtual) on comprehensive plan draft scenarios was noted.
• The regular March 6, 2024 meeting was cancelled due to lack of agenda items.
• Chair Burns will present the biannual update to Town Council at the February 27, 2024 meeting.