This document summarizes concerns about a construction moratorium imposed in Ward 13 of Minneapolis. It notes that while construction practices and new home styles are issues, readily implementable solutions exist rather than a blunt moratorium. Data used to justify the moratorium is incomplete and recent construction increases are recovering from recession declines. Alternatives to address concerns through cooperation rather than intimidation were not considered. The moratorium will halt significant economic activity without clear benefits to the community.

1. Katana Consulting
Ward 13 New Home
Construction Moratorium:
A Resident’s View
March 2014
Kevin Terrell
Katana Consulting

2. Katana Consulting
1 | Moratorium and concerns
Concerns
• Construction
practices
• Environment
• Home massing
and style
Moratorium

3. Katana ConsultingSOURCE: FAQs 13th Ward Interim Ordinance
1.1 | In 2013 there were 67 new homes permitted in Ward 13, out of more
than 10,000 lot locations on ~500 blocks in the ward.
201320122011201020092008

4. Katana Consulting
2 | Poor adherence to basic construction practices can make new
construction more painful that it needs to be for the community.
Debris
Impassable road
Blocked sidewalk
Poor silt fence installation
SOURCE: Residential Construction Concerns in the 13th Ward, Palmisano, March 7th, 2014; lakecountyohio.org

5. Katana Consulting
2.1 | Overseeing construction practices is a function of awareness,
adherence, inspections & enforcement. Are resources correctly deployed?
1. Council Member Palmisano, Fulton Neighborhood Association, March 12th, 2014
“They are building
the wrong house!”1
“Lack of oversight?
My inspector might
as well be a
backpack.”
MPLS
City

6. Katana ConsultingSOURCE: Vektor Digital
2.2 | Local firms have apps that can be easily adapted to raise awareness,
ensure adherence and reduce enforcement costs for new construction.

7. Katana ConsultingSOURCE: Residential Construction Concerns in the 13th Ward, Palmisano, March 7th, 2014
2.3 | Other situations such as sandy soil on narrow lots can be addressed
with known solutions such as requiring shoring of those excavations.

8. Katana ConsultingSOURCE: 13th Ward Interim Ordinance FAQ 3-10-2014; Fulton Neighborhood Association March 12th YouTube meeting video
3 | Palmisano cites a range of environmental reasons behind needing to
impose a moratorium.
“Sensitive deconstruction is
something I am personally passionate
about and working to institute”
Old growth trees Water & sewer Storm runoff

9. Katana ConsultingSOURCE: Fulton Neighborhood Association meeting video
3.1 | Processes already exist to further incent behaviors that protect our
community. Is a moratorium justified solely to enable certain preferences?
Points
for
Protection...
Lifestyle
preference?

10. Katana ConsultingSOURCE: Teardowns & Infill Housing, 2007
4 | Questions about the size and style of new homes versus the “character”
of a neighborhood are not unique to Minneapolis or Ward 13.

11. Katana ConsultingSOURCE: Teardowns & Infill Housing, 2007
4.1 | The issues of size and style of new homes were substantively
addressed in 2007 without a moratorium on teardowns.
Teardowns & Infill Housing, 2007

12. Katana Consulting
5 | Readily implementable solutions to all these concerns can be simple,
thoughtful and acceptable.
Simple
Simple rules that
address known
issues with better
awareness
Thoughtful Acceptable
Application of best
practices and wise
deployment of
resources
Balance between
property rights and
community interests,
evaluated fairly and
efficiently

13. Katana Consulting
6 | Yet the council declared that a moratorium is only way to address the
current situation.

14. Katana ConsultingSOURCE: FAQs 13th Ward Interim Ordinance
7 | To support the idea of a moratorium, the city uses data showing that the
increase in new home construction in Ward 13 is unprecedented.
201320122011201020092008

15. Katana ConsultingSOURCE: FAQs 13th Ward Interim Ordinance; Teardowns & Infill Housing, 2007
7.1 | A fuller history of Ward 13 construction suggests the current rise in
construction is making up for homes that were not built in the recession.
20132012201120102009200820072006200520042003
Single Family Home Building Permits by Ward
90+ homes not built
during the recession
in Ward 13

16. Katana ConsultingSOURCE: Minneapolis Trends
7.2 | The moratorium also stops an alleged surge in “disruptive” remodels.
Citywide, however, the count of such projects has been relatively constant.
0
100
200
300
400
500
600
700
2006 2007 2008 2009 2010 2011 2012 2013
Minneapolis Residential Permitted Remodels and Additions, $50,000+

17. Katana ConsultingSOURCE: Palmisano comments at Lynnhurst Neighborhood Association meeting, March 13th, 2014
8 | Palmisano claims that without the moratorium, builders in Ward 13 turned
their backs to her when invited to discuss this matter.

18. Katana Consulting
8.1 | On March 7th contractors had gathered at City Hall for a meeting with
Palmisano to discuss improvements to the construction process.

19. Katana ConsultingSOURCE: Southwest Journal, March 7th, 2014; http://www.ci.minneapolis.mn.us/meetings/council/WCMS1P-121547
8.2 | Unbeknownst to them, as contractors awaited her arrival, Palmisano
was introducing new business to the council to impose a moratorium.

20. Katana ConsultingSOURCE: Lynnhurst Neighborhood Association meeting, March 13th, 2014
9 | In her own words, Palmisano moved to put in place the moratorium
based on “no data”.
Admits to having “no data”
for breakdown on:
• Number of incidents
• Top offenders
• Severity of offenses
• Cost to the community

21. Katana Consulting
9.1 | In contrast, we know that the moratorium will halt $50-100M worth of
economic activity in Ward 13.
67 new homes sold
67 teardown lot purchases
Total economic activity
@ $750,000 each ~ $50 million
@ $250,000 each ~ $17 million
= $65 million + virtual teardowns

22. Katana ConsultingSOURCE: Lynnhurst Neighborhood Association meeting, March 13th, 2014
10 | Logical alternatives to pulling all staff to work on this project were
apparently not considered.
Acknowledged the novelty of
suggestion to “slow walk”
Ward 13 permits top allow
some staff to work on this
process improvement while
continuing to permit projects

23. Katana Consulting
11 | Which approach is best for everyone?
Community driven
Simple
Thoughtful
Acceptable
Council driven
Blunt
Uninformed
Intimidating

24. Katana Consulting
12 | Summary
Is that what you voted for in November 2013?

25. Katana Consulting
13 | Call to Action
Petition
Sign the petition
to stop this
@
Participate
Thursday March 20th
9:30 a.m.
Room 317
City Hall
Zoning and Planning
Commission
Pester
The city council
and the Mayor
Re: Final Vote
Friday, March 28th

26. Katana Consulting
Of the People.
By the People.
For the People.
Not TO the People.
14 | Reminder

27. Katana Consulting
Contact:
Kevin Terrell
kevin@katanaconsulting.com
www.katanaconsulting.com
@poebel
Board Member, Lynnhurst Neighborhood Association
For further information on this presentation