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ARDEN HILLS CITY COUNCIL—APRIL 27, 2026 12 Community Development Director Reilly explained this offers a slightly less aggressive density bonus for projects proposing affordable housing within their projects. He stated the North Heights senior project could have been allowed to go up to 40 units per acre, which was 100% more than was allowed. He noted the proposed language would allow for up to 30 units per acre. Councilmember Weber inquired if this was an either/or and would developers be able to apply the density bonus in any manner to a project. Community Development Director Reilly reported this was correct. Councilmember Rousseau stated the Planning Commission suggested the language brought forward align with Shoreview. She questioned how the language was working for the city of Shoreview. Community Development Director Reilly indicated staff has some understanding on how this policy was working. He reported there were three projects built prior to the adoption of the policy that voluntarily included affordable housing in part for a financial subsidy from the city. He commented the subsidy was approximately $140,000 per unit, which was far less than the average subsidy required to produce multi-family units in the metro area. He stated the average subsidy was in the range of$300,000 per unit. He explained after adoption of this policy, Shoreview has added more units and has not had any issues working with developers. He noted Shoreview does have more financial resources available to them than the City of Arden Hills does. He reported Shoreview was satisfied with the outcomes that they have had. Councilmember Rousseau questioned if it was necessary to require age restricted developments (55+) to have one three bedroom or larger unit. Community Development Director Reilly commented this has not been a standard but noted many of the 55+ properties had tenants that were still working and there was a demonstrated need in the market for three-bedroom units. Mayor Grant clarified this ordinance amendment would apply to the area in Arden Hills minus the area known as Rice Creek Commons. Community Development Director Reilly reported this was the case. Mayor Grant indicated he did not see this clearly called out within the document. He asked if this was because Rice Creek Commons has the TRC and the remainder of the City follows City Code. Community Development Director Reilly indicated this was correct. Mayor Grant spoke further to the affordability requirements for rehabilitated or renovated units. Mayor Grant opened the public hearing at 8:53 p.m. Kathy Sukke, 1286 Karth Lake Circle, reported there was no public notice of this item. She indicated the April 8 Planning Commission meeting was rather recent, by the slate 2.0's design. She stated affordability sounds so nice but encouraged all residents to ask the question affordability for whom and to whom. She explained 60% of all homeowners in the country have most of their