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ARDEN HILLS CITY COUNCIL WORK SESSION — FEBRUARY 9, 2026 16 Community Development Director Reilly said there is an argument that the region needs more units at 50% or less so there is a higher need for that. Meaning we want that to be at the same level as the others. Developers target market rate. The market rate is that 80-100% of the AMI. Councilmember Holden said we want to make sure people aren't walking away from developing here. She said this is more aggressive than Shoreview. Community Development Director Reilly confirmed. Councilmember Weber is willing to adjust the numbers in section 8.1. He recognizes that aiming for 60% to get a density bonus is ideal, he doesn't think it's realistic. He thinks 80% is better. We haven't seen one of these developments get fully vetted and reviewed with analyzing their finances to determine how well they are coming out. Keeping densities at a moderate number allows the city to get the benefits we want, through negotiation. Mayor Grant doesn't want us to price ourselves out of the market by going over the top with affordability. We need to be middle of the road. Community Development Director Reilly said these percentages are options. It's not all in one. They can pick more than one. He's hearing we don't want to incentivize anyone to produce income units targeted to people who are below 50% of AMI. Mayor Grant thinks we're starting to price ourselves out of the market when we're forcing that into the equation. There are other communities that went in big-time and developers just don't try in those communities. Councilmember Weber asked for confirmation that if a developer comes in and offers affordability with 5% of their units being 50% AMI, they qualify. They wouldn't also need to 7.5% and 10%. If they come in with 10% of their units being 80% AMI, they qualify and don't need to do the other two. Community Development Director Reilly confirmed Mayor Grant said he's still at 15%, 5% and 0%. Councilmember Weber said if we put 0 in there that means they can do 0 at 50% AMI and still qualify. Mayor Grant is saying you would take that whole line item out. Councilmember Rousseau would be willing to send this to the Planning Commission. She asked if it would be valuable for them to also have the neighboring communities' markets, for them to consider. Community Development Director Reilly confirmed he can do that. Discussion ensued regarding what the AMI in Arden Hills is. Median Family income in the metro is $132,400. at the income at 80% AMI for a family of four is $104,200, 60% is $79,400 and 50% is $66,200.