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ARDEN HILLS CITY COUNCIL WORK SESSION — JANUARY 12, 2026 11 consistent with the comprehensive plan may be granted to increase the maximum permitted density if the project meets affordable housing policies. Councilmember Holden said the density doesn't necessarily equate to affordability. If a developer builds a six -story building and two floors are affordable, are there lesser amenities? Community Development Director Reilly said they are not allowed to make units that have lower quality units. The quality standards need to be the same. Councilmember Weber said with so few lots available we shouldn't build policy based on what exists now. We don't know what will happen in the future. There have been several lots that are available that we didn't think were an option before. We should be creating a policy and a list of items we can negotiate for affordability, in exchange for density. He asked Staff what they need in order to move this forward. Community Development Director Reilly said he believes he has what he needs. He shared a slide that shows next steps. If we can address the items on the list and we increase the net tax capacity of the municipality, everything from a housing cost burden standpoint will be reduced for existing residents and more flexibility to have other choices beyond what exists today. The Metropolitan Council is identifying the existing supply, the need of people who are here and what developers may do. Arden Hills is participating in those conversations. Councilmember Holden said the density bonus does not mean affordability. There is a list showing other ways to get density bonuses. Are we doing density bonuses to gain affordable housing or are we offering density bonuses to get whatever we want? If we are only doing density bonuses for affordable housing, then we wouldn't have to think about other incentives within the zoning code. Community Development Director Reilly said he heard Council saying they want a menu of solutions to the supply problem, along with a solution that will allow us to put teeth in a policy to require the developer to provide some affordable units. If a developer has a purchase agreement and is unable to do affordable units, we want some other no cost benefit to the community. Councilmember Holden said we have always gotten that through a PUD. Councilmember Weber said he would like to see a menu of items that we can ask for. He also noted that if affordability is out for a developer, the City needs to be able to say no to that developer. F. Committee/Commission Liaison Role Policy (Item 3.E on published agenda) Not Discussed. G. Rice Creek Commons/TCAAP Discussion Not Discussed. H. Agenda Planning Not Discussed.