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