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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 11, 2025 3 Councilmember Rousseau said it could be young professionals, too. Vishal Dutt asked for clarification if she was saying each bedroom would have its own rent with a common area? Councilmember Rousseau confirmed. They each have a separate lease. Vishal Dutt said that is a student housing concept. He said they could look at it. Councilmember Rousseau asked if there is any reason he wouldn't consider retail on the first floor. Vishal Dutt said he has looked at that in other cities for other projects and right now vertical retail with housing on top does not work. Those retail locations tend to stay vacant forever. What he has seen work, is if there is enough land, a horizontal use where there is an apartment complex and then there is a separate retail space on the same pad, but separate from the housing structure. He is doing that in Oakdale right now. There is not enough land on this site to do that. If he were to hear from Council that it is a requirement, he would have to ask for financial assistance. Councilmember Holden asked if he has done Phase 1. She said the site has some pollution and wonders if they have a plan to remediate it to residential standards. Vishal Dutt said he has talked to the land owner but doesn't have a plan yet. He wanted to come to Council and present this preliminary concept. He wanted to gauge Council's appetite for this project before spending money and time creating that plan. Councilmember Holden is not interested in giving up any commercial space for apartments. There are a few big commercial properties in Arden Hills and they are our bread and butter. She wouldn't want to see commercial property go towards residential. She asked where is the park land? Where will kids ride their bikes? This is being sold as a possible family -friendly development, with the 3-bedroom units. We will have kids playing right on Lexington. The only way to get to a park would be over the railroad bridge. She asked about the materials. She thinks it looks like all EIFS. Vishal Dutt said materials have not been discussed yet. Michael Kuntz said they are just defining the site to see what may fit here. He said the site is packed with building and parking, right now. This site only works if it is around 100 units. While staying in compliance with the city ordinance to remain at 3-stories, the site is packed. If they were allowed to go up one more story there would be more land to work with and a play structure could be included. Councilmember Monson heard him say that retail on the first floor is tough, economically. She asked if that is a density issue. Do they need more housing to make that model work? Vishal Dutt confirmed. You need more land area and more housing. It would take away from the unit count. Retail market trends are that businesses want their own building rather than being a part of an apartment complex. It's harder to get done and the space may stay vacant much longer.