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ARDEN HILLS CITY COUNCIL WORK SESSION — FEBRUARY 9, 2026 14 <br />Community Development Director Reilly said we can evaluate it. We can have a housing needs <br />and housing supply study done again. The last one was done for Rice Creek Commons and it's a <br />little old. Now is a good time to do a study in preparation for the Comprehensive Plan. There are <br />dollars from other agencies available to pay for those kinds of things. That would help us understand <br />where our desirable development sites are and what kinds of products would be of interest. The <br />Ramsey County Community and Economic Development Team have contracted with Urban3, a <br />consulting group that does visualizations of tax capacity and identifying the best options for high - <br />value development in a community. They are offering each municipality in the County the <br />opportunity to have a place -based resource. <br />Councilmember Rousseau likes the idea of the very low income, low income and workforce <br />housing percentages. She suspects that if we go lower than 80% AMI there will have to be some <br />incentives from the city. She wants to understand how many spaces would there be if we support <br />5% of units are very low income. What does that look like? <br />Councilmember Holden asked how this would work with a PUD. A developer isn't going to <br />propose including sidewalks, landscaping or playground equipment if this is in place. We're more <br />limited on what we can request through the PUD because they won't have the money to do it. <br />Community Development Director Reilly doesn't think that's an assumption that bears out in the <br />marketplace. <br />Councilmember Holden asked if there will be enough area for playgrounds if we increase the <br />maximum coverage by 10%. She wonders where the 10% came from or how it was vetted out. <br />Community Development Director Reilly said those are all things that are options. The density <br />bonus compensates for required affordable units. With lot coverage increases the developer would <br />be able to decide which option works best for them. If they're strictly marketing to families, they <br />won't create a site that doesn't allow them to have a successful lease -up rate for families. <br />Councilmember Holden said then we won't get as much density. <br />Community Development Director Reilly confirmed or we would get more 1- and 2-bedroom <br />units and fewer family units if they use a bigger piece of the land. <br />Councilmember Holden said according to Ramsey County the biggest need isn't 3 bedrooms. If <br />we do affordable housing, how does that work in an apartment? She has heard before that they <br />cluster the affordable units in one area of the building? <br />Community Development Director Reilly said that can't happen, based on the proposed language. <br />They have to be distributed throughout and cannot be concentrated in any single building, floor or <br />section. They must be proportionately distributed across all unit types and indistinguishable from <br />market rate units. <br />Councilmember Holden asked if that is our rule. <br />Community Development Director Reilly confirmed it's our proposed rule. Generally, what <br />happens is developers who are volunteering to include affordable units offer a certain number of <br />each unit type available at the affordable rate and they lease them up, as applications come in. <br />