Laserfiche WebLink
ARDEN HILLS CITY COUNCIL WORK SESSION — JANUARY 12, 2026 10 <br />Discussion ensued that there need to be more options for downsizing than just senior living or <br />assisted living. Seniors are staying active and want to have places with yards and space for their <br />grandkids. <br />Mayor Grant said if 20 units per acre is allowed and we bump it to 25 or 30 units, and if some of <br />those units are affordable, someone has to pick up the affordability component of that for the <br />developer to financially justify the project. If the developer has to fund the affordable units, it puts <br />more strain on his proforma. <br />Community Development Director Reilly said it depends. If they are going to build the unit <br />anyway, it has a cost. They could lease it for a lower rate than the rest of the units they are leasing <br />but it will look the same. No one has to put extra money in, in order for some of the units to cost <br />less than the others. <br />Discussion ensued regarding the benefit to the developer is less on a per unit basis. A developer <br />will determine how much they need to make on each unit. Building a place to live shouldn't <br />necessarily be a revenue generator. <br />Mayor Grant said it was presented that Arden Hills has higher land cost. He agrees and that causes <br />certain pressure for developers as they have to maintain something, on paper, to take to lenders to <br />get financing. He asked if we are in an environment today where capital is easy to come by in the <br />lending world. <br />Community Development Director Reilly said capital is easy to come by for the "right" people. <br />Councilmember Monson said in terms of supply, she thinks a number of the options are managed <br />through our ordinance in some capacity. She is supportive of maintaining flexibility for density <br />bonuses. She asked if staff has a recommendation from the items on the list. <br />Councilmember Holden said just because we give someone a density bonus doesn't mean we're <br />getting anything affordable out of it. <br />Community Development Director Reilly has heard some on City Council say they want to tie <br />affordability to the density bonus. <br />Councilmember Holden said density bonuses don't necessarily drive affordability. How do we <br />force affordable housing within the density bonus? <br />Community Development Director Reilly pointed to a sample policy in the agenda packet that <br />shows how that can be done. <br />Councilmember Holden said we would have a policy but we will still want to have discussions on <br />a parcel by parcel basis. We could not have the policy but still have it in our mind to bring it forward. <br />We need to figure out what we would want knowing we have limited land. She thinks it will come <br />down to the discussion with the developer. <br />Community Development Director Reilly confirmed we can do a case -by -case negotiation using <br />these parameters. We can also adopt a policy that says on a case -by -case basis density bonuses <br />