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ARDEN HILLS CITY COUNCIL WORK SESSION — JANUARY 12, 2026 8 where the cost to build or buy the land is high. The more options people have, the more churn in the market and the more ability there is for different kinds of people to move in and out of the community. There are a lot of ways to approach the supply side to make it easier to build, generally. Community Development Director Reilly shared a list of low or no cost ways for a city to address the supply side of residential real estate development. There are non -financial incentives that allow flexibility for the developer. They can offer more amenities, dedicate space for public use, include affordable units or add sustainable design elements. Many of these options are being used by suburban communities in the Metro. New buildings will increase our net tax capacity. The more net tax capacity you have, the less expensive it is for anybody to live here because property taxes are spread among more property owners. Community Development Director Reilly provided some examples of code language that may be appropriate for Arden Hills, outside of Rice Creek Commons. He shared examples of what other communities do. Cottage Grove uses Planned Unit Developments (PUDs) for most of their developable areas and Forest Lake has made zoning code changes allowing for density bonuses to incentivize developers to include affordable units. Discussion ensued regarding what density is needed in order for a developer to build a successful product. It will vary depending on location. In Arden Hills the maximum density in the R-4 high density residential is 12. It is 20 units per acre in the B-2 zoning district. Councilmember Holden asked what percentage "mostly" means when Staff says Arden Hills homes are mostly move -up homes. Community Development Director Reilly said it's the majority. If we take the houses at the manufactured home park and the remaining insulated summer cottages, we have our non -move -up home calculation. Discussion ensued regarding what number of homes that is. Further discussion ensued regarding the number of homes in certain neighborhoods that aren't 1,500 square feet. Council thinks it's not just the manufactured homes and summer cottages. Councilmember Holden asked how many non-TCAAP acres are available for development where this could even make a difference? Community Development Director Reilly gave three examples of sites in the City that are either for sale or available for redevelopment. Councilmember Holden asked if there is vacant land that is not commercial. Community Development Director Reilly noted there is a vacant parcels list. Those properties would be developable through subdividing existing residential lots. Councilmember Holden noted Director Reilly said the school district is a hidden gem. She pointed out that Arden Hills has been listed as a top ten place to live by Forbes Magazine and a few other sources. The school district is low on the list of variables they consider. She asked about eliminating parking as one of these tools. Are we just talking about multi -family?