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ARDEN HILLS CITY COUNCIL – JANUARY 13, 2025 5 Single Family Residential District and POS Parks and Open Space District and are used for residential uses and houses of worship. Planning Consultant Hofer reviewed the history of the property, the Planned Unit Development, Conditional Use Permit and Plan Evaluation information in detail with the City Council. He explained the Planning Commission reviewed this application at the December 4, 2024 meeting. The Commission discussed the discretion the City has in reviewing the application, the park dedication fees, traffic controls, the lack of affordable housing in the proposal, the density of the proposal, landscaping and tree management, access to the site, and internal circulation of traffic. The Commission voted 5-2 to recommend denial of Planning Case 24-018 with the following findings: 1. The application is not consistent with the policies within Chapter 6 of the Comprehensive Plan: Land Use, or within and the goals of Chapter 7 of the Comprehensive Plan: Housing, that encourage the incorporation of affordable and life-cycle housing into new development and redevelopment where feasible. 2. The request for additional density, floor area ratio, and building height is not consistent with Section 1355.04 Subd. 3.B of the City Code in that the proposed development does not meet the goals for population density and the orderly development of the neighborhood and the city within the general purpose and intent of this Zoning Code and the Comprehensive Plan for the City. Planning Consultant Hofer reported since the December Planning Commission meeting, the Applicant has submitted a supplemental narrative to address the concerns discussed at the meeting. The Applicant has stated the goals of the City’s Comprehensive Plans that the feel they are meeting. The Applicant has also stated that in exchange for the City providing a financial subsidy they would propose to provide 10 units at 80% or less of the Area Median Income (AMI). Housing that has controlled prices under this value is considered affordable. He clarified a mistake in the staff report that stated the proposed rate for these units is estimated to be $336 and $625 per month and that the rates were to be between $1,864 and $1,950 per month. To accommodate these affordable units, the Applicant has stated that they would be looking for a cost savings of at least $1,300,000 for the development from the City. The Applicant has proposed this be achieved through a cash contribution or a reduction and/or waiver of City fees and charges. The Applicant did not indicate a time when the affordable units would be transitioned to market rate. Planning Consultant Hofer explained the City Council has the authority to waive the public use and park dedication fees required with the subdivision of the property as described in Section 1130.08. The City does have additional processes and means to provide financial support or business subsidies to projects that meet specific purposes. These standards are established in the City of Arden Hills Business Subsidy Criteria and City Public Financing Guidelines, (Public Financing Guidelines) dated July 27, 2015. This process allows for the City to consider public financing through tax increment financing, tax abatement, bonds, waiver of City fees (excluding building permits), and other forms of public financing, provided a development meets the criteria set within the standards. With the late addition of the affordable units, staff have not been able to evaluate the proposed project under these standards. Planning Consultant Hofer stated for the project to move forward with any kind of financial support that is detailed within Public Financing Guidelines, the Applicant would need to waive