02-09-2026-WS - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORK SESSION — FEBRUARY 9, 2026 7 Michael Salmen with Transwestern joined the conversation. He said they sell vacant land and buildings that are vacant or will become vacant. Many of those parcels are being purchased by developers who tear down what exists and redevelop the land. On behalf of the owner, Transwestern went out to find someone who can use the building in its current condition. That's usually their best buyer. They have exhausted that path. The developers who are still interested want to build 150-200-unit buildings. They are conscious of the fact that is more than what is allowed. The developers have been vetted and they looked to find the best developer that could accomplish a Class A project. They have settled on the Roers proposal, pending City Council's comments. He said none of the developers he spoke with were talking about doing affordable units due to the cost. Most of the land that they sell around the Twin Cities with an affordability component, there is some incentive provided by the city they are building in. It is difficult to build affordability into a project, without that. Councilmember Weber said the ordinances he's seen, the incentive is additional density. This development is already asking for that. He understands there are a lot of factors that play into it but it should be recognized that exceeding the density by over 25% for any zone in Arden Hills is already a significant incentive. Mr. Salmen appreciates that point and he thinks everyone, including Roers, will acknowledge that is an incentive. The developers he talked to about this site were asking if TIF was available and we were told, very clearly, that there was probably no financial incentive vs. density incentive. Most of the developers he spoke with said they wouldn't be able to do it without a TIF incentive. Councilmember Holden asked if affordable apartments are based on the total cost of the project, including demo and everything else. Or is it based on the apartment building, itself. Community Development Director Reilly sought clarity. He asked if the question is whether or not the cost of rent is directly related to the total cost of development. Councilmember Holden said obviously it isn't, but she confirmed that is the question. She said market rates are about the same as everyone else around the area. By the time they do the demolition, cleaning the site, maybe they do a phase 1 and everything else. All that adds up. When talking about affordability on the price of the apartment rent is based on the total project cost or is really just based on the finished building. Community Development Director Reilly said it is based on what the market will bear for the cost of the place to live. Councilmember Holden thinks that's not a great answer because in Arden Hills they can have everything at market rate and they can be full. Councilmember Monson said we can't control the housing market. We can only do what we can within our footprint. She said the ordinance says it's 20 units per acre. She asked how long we have had this density number. City Administrator Jagoe would have to verify, but she believes it was amended when we introduced the multi -family to the B2 District for New Perspectives. She believes that was 2018 or 2019.