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ARDEN HILLS CITY COUNCIL WORK SESSION — OCTOBER 13, 2025 18 Councilmember Weber said there are opportunities in a City that has a significant potion of its land that is tax exempt. This year we had the opportunity to put affordable units on a property that historically has never been taxed. The City passed on the opportunity. Having these policies in place will allow us to approach that. The City won't see a loss because we have never made money off of that land. He would like some clarification on the table that addresses owner - occupied housing affordability provided in the packet. From the map, we get an idea of where the affordable housing properties are. They are typically the townhomes and the mobile homes. He doesn't think HOA fees and other rental fees are represented in the table. Those fees lower the affordability of those properties. He assumes lot rent and HOA fees need to be included in these calculations to determine true affordability. Councilmember Rousseau asked about putting residential with commercial. She doesn't see why we can't add a couple of levels on a commercial property. She would like Staff to determine if that is reasonable and in what areas of the City. Councilmember Monson said this is a helpful overview of how to think about this. Updating zoning to allow for different housing options is one of the tools. It's about offering different forms for life cycle. It could also play a role in the ADU discussion. We allowed for higher density at North Heights without the affordability piece. There are ways to do this that won't require us to have deep pockets. She thinks we can do it incrementally. Community Development Director Reilly said the use of the term "big house" earlier in the discussion is one of the ways people think about solving that "missing middle" housing type. These can include so-called "Big houses" which are four- and six-plexes that look like large homes or a true, small scale starter home (fewer than 1,000 square feet; selling for less than $375,000). Councilmember Holden asked if there is anything to be done about home ownership. That's more important. If someone owns it, they will take better care of their property. Community Development Director Reilly said this is designed to be about affordability. Regardless of tenure, type of home or who it is. Councilmember Holden said there is a difference between the price of the home and the burden. Those don't interact anywhere other than as a data point. Community Development Director Reilly said people may have started living in that home while paying 30% of their income and now they've retired or become disabled. Now the income no longer matches the cost they had when they purchased the house. Over time, income decreases or taxes increase. Councilmember Holden said we have people who purchase homes they can't afford, send their kids to the Mounds View School District and then move out when the child graduates. Councilmember Monson said people are willing to pay premiums to have their kids in a good school district. This isn't new. It's only high -income earners who can afford that. Mayor Grant asked if everyone has asked their questions. Council can email any additional questions to Community Development Director Reilly in advance of his presentation on the topic.