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HomeMy WebLinkAbout04-27-26-RMayor: David Grant Councilmembers: Brenda Holden Emily Rousseau Tena Monson Kurt Weber City Council Agenda April 27, 2026 7:00 p.m. City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651-792-7800 Website: www.cityofardenhills.org City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. Members of the public may attend a meeting in -person at City Hall or they may view the meeting remotely on the City's website using the below link. Meetings are also broadcast on Cable Channel 16 for those that live in Arden Hills. https://cityofardenhills.org/320/`­Watch- City-Meetings Some Councilmembers may be participating in this meeting by interactive technology/remotely. This meeting will be streamed live on local Cable Channel 16 and available for playback on our website. CALL TO ORDER 1. APPROVAL OF AGENDA 2. TCAAP/Rice Creek Commons Update Jessica Jagoe, City Administrator 3. PUBLIC INQUIRIES/INFORMATIONAL This is an opportunity for citizens to respectfully bring to the Council's attention any items which are relevant to the City. In addressing the Council, you must first state your name and address for the record. Comments shall be limited to three (3) minutes or less. Written documents or other materials should be handed to the City Clerk for distribution to the Council prior to or during the meeting. Council will generally not respond at the same meeting where an issue is initially raised by a member of the public but the Council may refer the issue to staff for further research and possible report or action at a future Council meeting. 4. RESPONSE TO PUBLIC INQUIRIES 5. PUBLIC PRESENTATIONS 5.A. Twin Cities North Chamber Of Commerce Mike Dvorak, President Documents: MEMO.PDF ATTACHMENT A.PDF 6. STAFF COMMENTS 6.A. Transportation Update David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF 7. APPROVAL OF MINUTES 8. CONSENT CALENDAR Those items listed under the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion under a Consent Calendar format. There will be no separate discussion of these items, unless a Councilmember so requests, in which event, the item will be removed from the general order of business and considered separately in its normal sequence on the agenda. 8.A. Motion To Approve Claims And Payroll Pang Silseth, Accounting Analyst Joua Yang, Finance Director Documents: MEMO.PDF 8.13. Motion To Approve 2027 Budget Calendar Joua Yang, Finance Director Documents: MEMO.PDF ATTACHMENT A.PDF 8.C. Motion To Approve Amended 2025-27 Collective Bargaining Agreement For Central Pension Fund Contribution Jessica Jagoe, City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 8.D. Motion To Approve Appointment Of Building And Code Enforcement Inspector Jessica Jagoe, City Administrator Documents: MEMO.PDF B.E. Motion To Authorize Purchase Of Residential Recycling Carts From Cascade Engineering Jen Estling, Deputy Clerk Julie Hanson, Assistant to the City Administrator/City Clerk Documents: MEMO.PDF ATTACHMENT A.PDF 8.F. Motion To Accept Resignation Of Kate Olson From The Parks, Trails And Recreation Committee (PTRC) Jess Skalicky, Parks and Recreation Manager Julie Hanson, Assistant to the City Administrator/City Clerk Documents: MEMO.PDF 8.G. Motion To Approve Resolution 2026-025 Appointing Clara Bitzer To The Parks, Trails And Recreation Committee Jess Skalicky, Parks and Recreation Manager Julie Hanson, Assistant to the City Administrator/City Clerk Documents: MEMO.PDF ATTACHMENT A.PDF 8.H. Motion To Approve Professional Engineering Services Proposal From I&S Group, Inc. - Chatham Trail Area And Miscellaneous Storm Sewer Improvements David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 8.1. Motion To Approve Cooperative Agreement With The City Of Roseville - Hamline Avenue Watermain And Trail Improvements (Between County Rd C And Snelling Avenue) David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF 8.J. Motion To Approve Right -Of -Way Acquisition And Temporary Easement Costs - Old Highway 10 Trail Improvements David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF 9. PULLED CONSENT ITEMS Those items that are pulled from the Consent Calendar will be removed from the general order of business and considered separately in its normal sequence on the agenda. 10. PUBLIC HEARINGS 10.A. Planning Case 26-006 - Amending City Code Chapter 13 - Zoning Code Related To Requirements For Affordable Housing Jake Reilly, Community Development Director Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF 11. NEW BUSINESS 11.A. City Code Chapter 13 - Zoning Code Amendments - Planning Case 26-006 • Ordinance 2026-007 Amending City Code Chapter 13 - Zoning Code, Section 1320 to Include a New Section 1320.16 - Requirements for Affordable Housing • Authorization of Publication of Summary Ordinance Jake Reilly, Community Development Director Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF 12. UNFINISHED BUSINESS 13. COUNCIL/STAFF COMMENTS ADJOURN PUBLIC PRESENTATION - 5A MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, City Administrator SUBJECT: Twin Cities North Chamber of Commerce Presentation Budgeted Amount: Actual Amount: N/A N/A Funding Source: N/A Mike Dvorak, President of the Twin Cities North Chamber of Commerce, will be providing the attached presentation at the Monday, April 27 City Council meeting. AttarhmPnt Attachment A: Presentation Page 1 of 1 Attachment A H 0 Z LLI W 0 L) 0 M W lz W 44 LU J CL Q LL! W W Z U! m W Q M Cz CL ui H z 0 W Z 0 0 W N 0 N N f+ C i LL -0 M L L M 3 M N N 3 O E W C M 0 M 113 i m i E or L C M 0 H C 2 M 9 m c O L V m m - c O 40 m 4) s H a� U Q) W c O z 0 W-1 c O .4--j N f� O a� a� V) L— Q) M LO .> O J m .4—j O m E = w � U N zi W J W Z2at 0 0 J Z CI) LLo2 W W -o Q N U W Z w Uw7nZ Zm mo C W U C F Q O U a say 7s- yob s >- (f) a--+ L Q) ^ , vW .� J N � Ca _ -0 o N N ! 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O � ^W^ y L 0 N Q N O N 00 0 Y O L iv N cu E O N O C N O Q O O 0 }� O) O C r O u �V UU/� CN `Y C ^, W O O y Z m 4-0A / LE 7 O N E c Q � O Q ' I Q Q1 Q Q1 Q C1 Q C! Q 1 Q Q1 V1 GO 1l� fl� t0 t0 V1 u1 Q Q 1+1 00 0 d, o %A o J, o u, o 0 o J, w n n 0 Iz wl V) Q Q M m N Q Q1 N '+ o v+ N N a1 Q ul O N M a O ch cU .to cu (j) O C6 T— O O }, O U O oo Cll � c!j CUCP ., C6 co a--+ � " CU C Co E CU O cn }' E i co 0 O •� O � C= cn CU Oco Q •0 CU Cll E O C O O V Co I N O E 2— O CU +N N 0 cc Q � � 3: Cll U L— O Qyi j � cu O � Li o� > +r a� . 'a O &- " E O i E c6 U E M co L O a) U) � - a� o.-'a EU)_� 0 c Ln I 0 N O U O QLo LO U m E E'q O t 4.1 O O O) `D c� (D L C N C Gg I CDID C) U_CD L Q ol E O cn �U Q � CD CU � CD _ m E �� � -0 _ O C6 cn _ cn � I O O CU }, 4-1 0N D C: �) O O c6 � � Q = o E .� ° U a� cu O •< Q U) _ E a� o Q Z3 }, U O CU cn CU O cu � CU � Cll � � Q O C`. CU - Q E C6 1 O I }, Co 0 CU O V co O O cn — O Q C.. C +� Co ' — i cu i Cll fn > O Z3 Co 0 c 0 9- A A A A A A A A L 0 � CL _s 0 A i C s m W V WW 0 p2W J OJ W ♦ V♦ LU W_ W L O 0 cn Ix z C� W Z m m C W � c F— Cl) W_ H z 0 L) c) W z z 0 L) 10 co 75 Years MEMORANDUM DATE: April 27, 2026 STAFF COMMENTS - 6A TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: David Swearingen, Public Works Director/City Engineer SUBJECT: Transportation Update Budgeted Amount: Actual Amount: Funding Source: A verbal update will be provided at the City Council meeting. Page 1 of 1 CONSENT ITEM 8A MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Joua Yang, Finance Director Pang Silseth, Accounting Analyst SUBJECT: Claims and Payroll Listing Budgeted Amount: Actual Amount: N/A N/A Council Should Consider Motion to approve, table or deny the following: • Claims and Payroll Listing All items need a simple majority for action unless otherwise noted. Funding Source: N/A Background Payroll is processed biweekly and accounts payable is processed weekly. Budget Impact N/A A 2026 Payroll #9 Paid Claims - 4/4/2026-4/17/2026 (Check Nos. 54119-54146 and ACH Checks) Total Payroll $119,650.61 $119,650.61 $127,178.96 Total Accounts Payable $127,178.96 Total Claims $246,829.57 CITY OF ARDEN HILLS PAYROLL # 9 CHECKS DATED: Biweekly: 04/24/26 04/04/26 - 04/17/26 EMPLOYEE DEDUCTIONS AMT. CITY BENEFIT Payment Method FIT 8,226.84 EFT FICA Oasdi 6,123.98 6,123.98 EFT FICA Medicare 1,432.24 1,432.24 EFT SIT 4,071.23 EFT TOTAL TAXES 1 19.854.291 7.556.22 Family Medical Leave -ER Add'1 Family Medical Leave -ER Family Medical Leave-EE AL PFML PREMIUMS h Premium al Premium Health Care Reimb. Dependent Care Reimb. AL FLEXIBLE SPENDING 155.58 A/P Check* A/P Check* A/P Check* A/P Check* A/P Check* A/P Check* A/P Check* 456.35 456.35 456.351 611.93 791.43 0.00 316.28 0.00 162.50 156.25 426.461 0.00 HSA Health Savin 1,620.741 0.00 EFT TOTAL HEALTH SAVINGS 1 1,620.741 0.00 EFT EFT A/P Check* EFT EFT A/P Check* A/P Check* A/P Check* A/P Check* A/P Check* ERA 6,730.22 7,765.63 lissionSquare 2,969.11 0.00 entral Pension Fund -Union 1,920.00 IN State Retirement System 1,412.30 OTAL RETIREMENT 13,031.631 7,765.63 FLAC 22.76 ife/Addl/Dep Life 114.34 0.00 ife/Addl non -tax 28.96 TD/STD Insurance 20.00 ERA Life Insurance 140.00 JOE 49 Dues (Union) 0.00 OTAL VOLUNTARY 326.061 0.00 Total Employee Deductions 38,715.53 Net Payroll 0.00 Direct Deposit 64,928.59 Gross Payroll Tie -Out 103,716.83 Plus City Paid Benefit 15,933.78 TOTAL PAYROLL COST 119,650.61 FICA TIE -OUT Gross Payroll 103,716.83 Less Total FSA 3,426.46 Less Total H.SA 1,620.74 Less Voluntary Ins 51.72 Net P/R Subject to FICA 98,773.49 FICA Oasdi @ 6.20% 6,123.98 FICA Medicare @ 1.45% 1,432.24 EFT Accounts Payable Checks by Date - Detail by Check Date User: pang.silseth Printed: 4/23/2026 8:42 AM �RQEN HIILLS Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference ACH 0234 MACQUEEN EQUIPMENT INC 04/10/2026 P71196 Parts 805.22 Total for this ACH Check for Vendor 0234: 805.22 ACH 0292 OXYGEN SERVICE COMPANY INC 04/10/2026 0003647600 March Rental 45.79 0008926555 Supplies 65.18 0008927598 Parts 142.96 Total for this ACH Check for Vendor 0292: 253.93 ACH 0327 STAPLES INC 04/10/2026 6058194029 Supplies 49.99 6058612839 Supplies 50.88 6058612839 Supplies 103.94 6059482612 Credit Memo -49.99 Total for this ACH Check for Vendor 0327: 154.82 ACH 0387 MISSIONSQUARE #302482 04/10/2026 PR 26-08 PR Batch 00100.04.2026 MissionSquare EE Dec PR Batch 00100.04.2026 Mis; 2,580.00 PR 26-08 PR Batch 00100.04.2026 MissionSquare EE Peri PR Batch 00100.04.2026 Mis; 355.33 Total for this ACH Check for Vendor 0387: 2,935.33 ACH 0706 CERTIFIED LABORATORIES 04/10/2026 9556565 Eyewear and Gloves 496.69 Total for this ACH Check for Vendor 0706: 496.69 ACH 10268 DAVID SWEARINGEN 04/10/2026 04022026 Mileage Reimbursement Storm Pond Symposium 52.20 Total for this ACH Check for Vendor 10268: 52.20 ACH 10487 LUCAS MILLER 04/10/2026 04032026 Mileage Reimbursement-Stormwater Symposium 26.10 Total for this ACH Check for Vendor 10487: 26.10 ACH 10579 LEVANDER GILLEN & MILLER P.A. 04/10/2026 42000E-0326 March Legal 2,292.50 42000E-0326 March Legal 437.50 42000E-0326 March Legal 437.50 42000E-0326 March Legal 1,277.50 Total for this ACH Check for Vendor 10579: 4,445.00 ACH 10594 JENNIFER ESTLING 04/10/2026 040626 Mileage Reimbursement Jan -Mar 77.31 AP Checks by Date - Detail by Check Date (4/23/2026 8:42 AM) Page 1 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference Total for this ACH Check for Vendor 10594: 77.31 ACH 1363 WATER CONSERVATION SERVICES IN( 04/10/2026 150802 Leak Locate: 1910 Stowe 576.64 Total for this ACH Check for Vendor 1363: 576.64 ACH 4889 COMMUNITY FOOTWORKS 04/10/2026 04012026 March Footcare Clinic 436.80 Total for this ACH Check for Vendor 4889: 436.80 ACH 8032 PACE ANALYTICAL FIELD SVC INC 04/10/2026 26123766 March Drinking Water Survey 1,596.45 Total for this ACH Check for Vendor 8032: 1,596.45 ACH ADVS ADVANTAGE SIGNS & GRAPHICS INC 04/10/2026 V0226-253 Reflective Decal 58.50 Total for this ACH Check for Vendor ADVS: 58.50 ACH ALPI ALLEGRA PRINT & IMAGING INC 04/10/2026 179087 Business Cards -CA 166.94 Total for this ACH Check for Vendor ALPL• 166.94 ACH FAST FASTENAL 04/10/2026 MNSPR211637 Supplies 102.47 Total for this ACH Check for Vendor FAST: 102.47 ACH FPTC FLEXIBLE PIPE TOOLS AND EQUIPME 04/10/2026 32571 Cerrmanic Insert 61.00 Total for this ACH Check for Vendor FPTC: 61.00 54119 0131 BEISSWENGERS HOMETOWN HARDY 04/10/2026 132890/6 Supplies 9.16 3783/6 Supplies 177.93 3821/6 Supplies 11.99 3847/6 Supplies 29.97 3865/6 Supplies 77.97 3867/6 Credit -5.00 3877/6 Supplies 30.55 Total for Check Number 54119: 332.57 54120 10593 HYDRAULIC SPECIALTY INC 04/10/2026 090007916805 Cylinder Repair 614.84 Total for Check Number 54120: 614.84 54121 0257 MINNESOTA DEPT OF HEALTH 04/10/2026 2026 #12839 Water Operator Renewal #12839-2026 23.00 Total for Check Number 54121: 23.00 54122 0422 MINNESOTA POLLUTION CONTROL A 04/10/2026 2026 SC-3223 Wastewater Certificate Renewal 2026 SC-3223 23.00 AP Checks by Date - Detail by Check Date (4/23/2026 8:42 AM) Page 2 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount Total for Check Number 54122: 23.00 54123 10597 RYAN COMPANIES US INC 04/10/2026 RBS 18477 Toilet Repair 599.54 Total for Check Number 54123: 599.54 54124 3099 TRI STATE BOBCAT INC-LITTLE CANT 04/10/2026 A61530 Chain Saw and Case 232.29 A61587 Chain Saw Case 58.29 Total for Check Number 54124: 290.58 Total for 4/10/2026: 14,128.93 ACH 0189 GOPHER STATE ONE CALL 04/17/2026 6030188 Locates -March Locates 49.95 6030188 Locates -March Locates 49.95 6030188 Locates -March Locates 49.95 Total for this ACH Check for Vendor 0189: 149.85 ACH 0220 MINNESOTA DEPT OF LABOR & INDU 04/17/2026 ABR0373818X Pressure Vessel Inspection 25.00 Total for this ACH Check for Vendor 0220: 25.00 ACH 0285 XCEL ENERGY 04/17/2026 971245420 2/17-2026-3/18/2026 1,764.26 971245420 2/17-2026-3/18/2026 2,659.34 971245420 2/17-2026-3/18/2026 56.75 971245420 2/17-2026-3/18/2026 1,113.74 971245420 2/17-2026-3/18/2026 1,281.66 971245420 2/17-2026-3/18/2026 1,776.15 971245420 2/17-2026-3/18/2026 219.54 Total for this ACH Check for Vendor 0285: 8,871.44 ACH 0320 HEALTH PARTNERS INC 04/17/2026 009591042599 May Insurance 25,132.21 009591042599 May Insurance 1,302.43 Total for this ACH Check for Vendor 0320: 26,434.64 ACH 0706 CERTIFIED LABORATORIES 04/17/2026 9533776 Supplies -Aerosols 868.85 Total for this ACH Check for Vendor 0706: 868.85 ACH 0731 MIDWAY FORD 04/17/2026 652424 Service-22 Ford F250 50844 144.24 930832 parts 15.07 Total for this ACH Check for Vendor 0731: 159.31 ACH 0761 ELECTRIC PUMP LLC 04/17/2026 037974 LS 14 Service 875.25 Total for this ACH Check for Vendor 0761: 875.25 AP Checks by Date - Detail by Check Date (4/23/2026 8:42 AM) Page 3 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference ACH 10476 TWIN CITIES COMMERCIAL CLEANEI 04/17/2026 04261886 Janitorial Service -April 1,660.75 Total for this ACH Check for Vendor 10476: 1,660.75 ACH 10497 CINTAS CORP 04/17/2026 4265495422 April Mats 116.25 5327922101 First Aid 140.01 5327922101 First Aid 202.43 Total for this ACH Check for Vendor 10497: 458.69 ACH 10523 METRO-INET 04/17/2026 3388 IT Support -April 11,242.00 3425 VPN License 255.00 3426 Microsoft 365 200.00 Total for this ACH Check for Vendor 10523: 11,697.00 ACH 2279 NORMS TIRE SALES INC 04/17/2026 99774 Tires Tilt Deck & Hot Patcher 674.40 Total for this ACH Check for Vendor 2279: 674.40 ACH 5173 BADGER METER 04/17/2026 80232468 Beacon & LTE Sery Units -March 916.04 Total for this ACH Check for Vendor 5173: 916.04 ACH 7025 ON SITE COMPANIES -OSSTC INC 04/17/2026 0002051117 Restrooms 4/11-5/8 353.00 Total for this ACH Check for Vendor 7025: 353.00 ACH 7501 KELLY & LEMMONS PA 04/17/2026 67511 March Prosecution 4,128.38 Total for this ACH Check for Vendor 7501: 4,128.38 ACH FAST FASTENAL 04/17/2026 NINSPR211761 Supplies 98.98 Total for this ACH Check for Vendor FAST: 98.98 ACH FPTC FLEXIBLE PIPE TOOLS AND EQUIPME 04/17/2026 32524 Camera Trailer 116.35 Total for this ACH Check for Vendor FPTC: 116.35 ACH TOII TOKLE INSPECTIONS INC 04/17/2026 040126 Electrical Inspections -March 376.88 Total for this ACH Check for Vendor TOII: 376.88 54125 0131 BEISSWENGERS HOMETOWN HARD)A 04/17/2026 3739/6 Supplies 11.13 3748/6 Supplies 51.96 3750/6 Supplies 31.08 3901/6 Supplies 29.99 3983/6 Supplies 39.99 Total for Check Number 54125: 164.15 AP Checks by Date - Detail by Check Date (4/23/2026 8:42 AM) Page 4 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference 54126 10483 CENTRAL PENSION FUND 04/17/2026 401333.0326 March Apprenticeship Fund 321.60 Total for Check Number 54126: 321.60 54127 1033 COMCAST 04/17/2026 101030.0426 Service 4/3-5/2 108.35 98681.0426 Service 4/5-5/4 111.52 Total for Check Number 54127: 219.87 54128 10244 COMCAST BUSINESS INC 04/17/2026 267892244 April Service 511.31 Total for Check Number 54128: 511.31 54129 10633 COMPANION ANIMAL CONTROL 04/17/2026 03-2026 Animal Control -March 275.00 Total for Check Number 54129: 275.00 54130 0841 EHLERS & ASSOCIATES INC. 04/17/2026 105784 TCAAP-March 568.75 Total for Check Number 54130: 568.75 54131 0390 INT'L UNION OPERATING ENGINEERS 04/17/2026 1200.0426 April Dues 280.00 Total for Check Number 54131: 280.00 54132 10596 LB CARLSON LLP 04/17/2026 255175 2025 Audit Services 1,053.00 255175 2025 Audit Services 932.00 255175 2025 Audit Services 932.00 255175 2025 Audit Services 489.00 255175 2025 Audit Services 932.00 255175 2025 Audit Services 932.00 Total for Check Number 54132: 5,270.00 54133 10486 MINNESOTA METRO NORTH TOURIST\ 04/17/2026 041326 SpringHill Suites March 2026 Lodging Tax 8,786.62 Total for Check Number 54133: 8,786.62 54134 DEED MINNESOTAUI 04/17/2026 19402060 Q 12026 Unemployment Benefits 144.39 Total for Check Number 54134: 144.39 54135 10610 OUVERSON SEWER & WATER 04/17/2026 903655 Met Council I/I-1313 Karth Lake Cr 3,625.00 903676 Met Council I/I-1745 Crystal Ave 5,000.00 Total for Check Number 54135: 8,625.00 54136 AR-PRAI PRAIRIE HOMES 04/17/2026 PC 2025-00411 Escrow Refund PC 2025-00411 1562 McClung I 500.00 Total for Check Number 54136: 500.00 54137 1074 PRECISION LANDSCAPE & TREE INC 04/17/2026 AP Checks by Date - Detail by Check Date (4/23/2026 8:42 AM) Page 5 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference 90383 Tree Removal 1335 Ingerson Rd 1,800.00 91312 Tree Removal509 Colleen Ave 945.00 Total for Check Number 54137: 2,745.00 54138 10566 PULSE ELECTRIC INC 04/17/2026 4061 Lift Switch 1,225.00 Total for Check Number 54138: 1,225.00 54139 6748 RELIANCE STANDARD 04/17/2026 04-26 MNL 1320001211 962.28 04-26 MNL 1320001211 1,290.33 Total for Check Number 54139: 2,252.61 54140 0335 SCHERER BROS LUMBER CO 04/17/2026 966870 supplies 185.88 Total for Check Number 54140: 185.88 54141 5576 SCHINDLER ELEVATOR CORP 04/17/2026 4626282395 Elevator Service 3/24/26 913.58 Total for Check Number 54141: 913.58 54142 10635 STEVEN TOKLE INSPECTIONS INC 04/17/2026 040126 Electrical Inspections -March 2,233.60 Total for Check Number 54142: 2,233.60 54143 3099 TRI STATE BOBCAT INC-LITTLE CANS 04/17/2026 A61529 Turfinaster 4,185.30 543133 Wacker 4,299.00 Total for Check Number 54143: 8,484.30 54144 1161 VALLEY -RICH CO INC 04/17/2026 35471 1917 Stowe Ave 10,393.61 Total for Check Number 54144: 10,393.61 54145 10568 VERIZON CONNECT 04/17/2026 631000082904 March Service 334.95 Total for Check Number 54145: 334.95 54146 1557 VIA ACTUARIAL SOLUTIONS 04/17/2026 ADH-2026-03 GASB 75- FYE 2025 150.00 ADH-2026-03 GASB 75- FYE 2025 150.00 ADH-2026-03 GASB 75- FYE 2025 150.00 ADH-2026-03 GASB 75- FYE 2025 150.00 ADH-2026-03 GASB 75- FYE 2025 150.00 Total for Check Number 54146: Total for 4/17/2026: 750.00 113,050.03 AP Checks by Date - Detail by Check Date (4/23/2026 8:42 AM) Page 6 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference Report Total (61 checks): 127,178.96 AP Checks by Date - Detail by Check Date (4/23/2026 8:42 AM) Page 7 CONSENT ITEM - 8B MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Joua Yang, Finance Director SUBJECT: 2027 Budget Calendar Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motion to approve, table or deny the following: • 2027 Budget Calendar Background Staff is beginning the process of developing a preliminary 2027 Budget. As we proceed forward and take the necessary steps, staff will be asking for general direction and guidance from the Council during its July work session. Discussion In order to officially start the budget process, a budget calendar needs to be approved by the Council. The draft budget calendar is attached for Council review and approval. Budget Impact None. Attachments Attachment A: 2027 Budget Calendar Page 1 of 1 CITY OF HILLS Attachment A 2027 BUDGETGETCALENDAR April 27, 2026 City Council Approval of Budget Calendar. April — May Department Heads Prepare 2027-2031 CIP requests and background material. May 22, 2026 Department Heads Submit CIP Requests to Finance Department. May Forms Distributed to all Department Heads for 2027 Operating Budget. June City Administrator and Finance Director review Department. CIP Requests and confer with Departments. June 2027-2031 CIP is drafted and distributed to City Council for review. June Department Heads Prepare Budgets and Background Material. June 19, 2026 Department Heads Submit Budget Requests to Finance Department. July 13, 2026 City Council Work Session to discuss 2027 Operating Budget parameters and 2027-2031 CIP. July City Administrator and Finance Director review Department Budgets and Confer with Departments. ust Finance Department completes Preliminary nary R� ue Estimates. W August City Administrator Budget is drafted for Presentation to Council at Work Session and distributed to Council for review. August & September City Council Work Sessions to discuss Preliminary 2027 Budget. September City Administrator's recommended Preliminary 2027 Budget distributed to the City Council. e temb City Council adopts the Preliminary 2026 Property Tax Lev (Pa able 2027). September Council Certifies date for public (TNT) hearing and continuation hearing (if necessary) to county. September Finance Director submits preliminary 2026 Property Tax Levy (Payable 2027) to County for certification. October through City Council Work Sessions as needed. November Mid -November Truth in Taxation Notices and Public Hearings Schedule distributed by County. Early December Public Hearing for Budget and Levy consideration. Mid -December Continuation Hearing, Approval of Budget and Certification of Property Tax Levy For submission to County. Late December Finance Director Submits Final Levy to County and prepares Final Budget Document. MEMORANDUM DATE: April 27, 2026 CONSENT ITEM - 8C TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, City Administrator SUBJECT: 2025-2027 Collective Bargaining Agreement Amendment — IUOE 49 Budgeted Amount: Estimated Amount: Funding Source: N/A N/A N/A Council Should Consider Motions to approve, table, or deny the following: • 2025-2027 Collective Bargaining Agreement Amendment with the International Union of Operating Engineers Local 49, effective May 1, 2026. Background On December 161h, 2024, the City Council approved the 2025-2027 Collective Bargaining Agreement (CBA) with the International Union of Operating Engineers (IUOE) Local 49. In this agreement, Article XXX and the Memorandum of Understanding (MOU) include the terms related to Central Pension Fund participation. The Union members have requested to increase their hourly contribution amount from $3.00 to $3.90 effective May 1, 2026. Minnesota Statute§ 356.24, Subd. 1(10) expressly authorizes the Employer to contribute public funds to the Central Pension Fund as a supplemental pension plan for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for such coverage. The MOU within the CBA specifies that the employee's wage is reduced by the contribution rate. This change has no budget impact since it is the employee -elected amount that is funding the pension plan. It should be noted that the Union members requested an increase from the original amount of $2.40 to the current contribution amount of $3.00, which was approved by the City Council on February 10, 2025. Page 1 of 2 The IUOE Local 49 Business Representative has indicated acceptance of the tentative agreement with the proposed amendment, as it was initiated by the Union members. Staff has provided a draft redlined of Article XXX of the 2025-27 CBA with the changes as reflected above in Attachment A. Budget Impact This change has no budget impact since it is the employee contribution amount. Attachments Attachment A: Proposed Article XXX of 2025-27 CBA Amendment — Redlines Attachment B: Proposed Article XXX of 2025-27 CBA Amendment - Clean Page 2 of 2 Attachment A LABOR AGREEMENT BETWEEN THE CITY OF ARDEN HILLS AND INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL NO. 49 JANUARY 1, 2025 THROUGH DECEMBER 31, 2027 AS AMENDED ON NOVEMBER 24, 2025APRIL 27, 2026 ARTICLE XXX - CENTRAL PENSION FUND The City of Arden Hills agrees to participate in the Central Pension Fund of the International Union of Operating Engineers and Participating Employers ("Central Pension Fund") in accordance with the terms of the Restated Agreement and Declaration Trust of the Central Pension, the Plan of Benefits, and this Memorandum of Understanding. 1. Minnesota Statute§ 356.24, Subd. 1(10) expressly authorizes the Employer to contribute public funds to the Central Pension Fund as a supplemental pension plan for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for such coverage. 2. Sections 4.1 of the Restated Agreement and Declaration of Trust of the Central Pension Fund and 13.01 of the Plan of Benefits only permits Employer Contributions to the Fund. 3. The Parties agree that the agreed upon Employer contribution amount that would otherwise be paid in salary or wages will be contributed instead to the CPF as a pre-tax Employer contribution. Contributions from the Employer will not be funded from any other source unless agreed upon by the parties. 4. The hourly contribution rate will be applied to every hour compensated (i.e. hours worked, vacation, holiday and sick time) except for overtime hours worked. The Employer shall remit this contribution directly to the Central Pension Fund at P.O. Box 418433 Boston, MA 02241-8433. 5. A contribution of $3.9000 per straight time hours compensated prevents annual Central Pension Fund contributions on behalf of eligible Employees from exceeding $10,000.00 in a year and therefore complies with the limitations set forth under Minnesota Statute, §356.24, Subd. 1(10) as amended. 6. For purposes of determining future wage rates, the Employer shall first restore the amount of the Employer Contribution, which is currently the CPF contribution rate of $3.9000 per hour, then apply the applicable wage multiplier, then reduce the revised wage by the Central Pension Fund contribution rate. 7. For purposes of calculating overtime compensation, the Employer shall first restore the amount of the Employer Contribution $3.9000 then apply the applicable 1.5 wage multiplier required under the Fair Labor Standards Act (FLSA) and the Collective Bargaining Agreement, then pay the resulting amount for overtime worked. 8. The Parties agree that the Public Employees Retirement Association (PERA) interprets Employer contributions to the Central Pension Fund as being included in determining "salary" for the purposes of the public pension. 9. The parties agree to abide by the terms and conditions of the Restated Agreement and Declaration of Trust and the Plan of Benefits of the Central Pension Fund. 10. Effective January 1, 2022, the contribution rate equals $2.40 and as amended effective February 10, 2025, equals $3.9000 per straight time hour compensated. 11. Members, by majority vote, may change the contribution rate at any time during the life of the Collective Bargaining Agreement. The Union and Employer will work together to implement member approved changes as soon as is practicable. ARTICLE XXI - DURATION This AGREEMENT shall be effective as of the date of its signing and shall remain in full force and effect January 1, 2025 through December 31, 2027. It shall continue in full force and effect from year-to-year, unless terminated or renegotiated in the manner provided by the Public Employment Labor Relations Act of 1971 as amended. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on this day of April, 2026. CITY OF ARDEN HILLS By: _ Mayor INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL No. 49 Ryan Davies, Business Manager City Administrator Ron Boesel, Business Representative Union Steward Attachment B LABOR AGREEMENT BETWEEN THE CITY OF ARDEN HILLS AND INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL NO. 49 JANUARY 1, 2025 THROUGH DECEMBER 31, 2027 AS AMENDED ON APRIL 27, 2026 ARTICLE XXX - CENTRAL PENSION FUND The City of Arden Hills agrees to participate in the Central Pension Fund of the International Union of Operating Engineers and Participating Employers ("Central Pension Fund") in accordance with the terms of the Restated Agreement and Declaration Trust of the Central Pension, the Plan of Benefits, and this Memorandum of Understanding. 1. Minnesota Statute§ 356.24, Subd. 1(10) expressly authorizes the Employer to contribute public funds to the Central Pension Fund as a supplemental pension plan for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for such coverage. 2. Sections 4.1 of the Restated Agreement and Declaration of Trust of the Central Pension Fund and 13.01 of the Plan of Benefits only permits Employer Contributions to the Fund. 3. The Parties agree that the agreed upon Employer contribution amount that would otherwise be paid in salary or wages will be contributed instead to the CPF as a pre-tax Employer contribution. Contributions from the Employer will not be funded from any other source unless agreed upon by the parties. 4. The hourly contribution rate will be applied to every hour compensated (i.e. hours worked, vacation, holiday and sick time) except for overtime hours worked. The Employer shall remit this contribution directly to the Central Pension Fund at P.O. Box 418433 Boston, MA 02241-8433. 5. A contribution of $3.90 per straight time hours compensated prevents annual. Central Pension Fund contributions on behalf of eligible Employees from exceeding $10,000.00 in a year and therefore complies with the limitations set forth under Minnesota Statute, §356.24, Subd. 1(10) as amended. 6. For purposes of determining future wage rates, the Employer shall first restore the amount of the Employer Contribution, which is currently the CPF contribution rate of $3.90 per hour, then apply the applicable wage multiplier, then reduce the revised wage by the Central Pension Fund contribution rate. 7. For purposes of calculating overtime compensation, the Employer shall first restore the amount of the Employer Contribution $3.90 then apply the applicable 1.5 wage multiplier required under the Fair Labor Standards Act (FLSA) and the Collective Bargaining Agreement, then pay the resulting amount for overtime worked. 8. The Parties agree that the Public Employees Retirement Association (PERA) interprets Employer contributions to the Central Pension Fund as being included in determining "salary" for the purposes of the public pension. 9. The parties agree to abide by the terms and conditions of the Restated Agreement and Declaration of Trust and the Plan of Benefits of the Central Pension Fund. 10. Effective January 1, 2022, the contribution rate equals $2.40 and as amended effective February 10, 2025, equals $3.90 per straight time hour compensated. 11. Members, by majority vote, may change the contribution rate at any time during the life of the Collective Bargaining Agreement. The Union and Employer will work together to implement member approved changes as soon as is practicable. ARTICLE XXI - DURATION This AGREEMENT shall be effective as of the date of its signing and shall remain in full force and effect January 1, 2025 through December 31, 2027. It shall continue in full force and effect from year-to-year, unless terminated or renegotiated in the manner provided by the Public Employment Labor Relations Act of 1971 as amended. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on this day of April, 2026. CITY OF ARDEN HILLS By: _ Mayor Lo INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL No. 49 Ryan Davies, Business Manager City Administrator Ron Boesel, Business Representative Union Steward CONSENT ITEM - 8D MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, City Administrator SUBJECT: Hiring of Building and Code Enforcement Inspector Budgeted Amount: Actual Amount: Funding Source: $104,586 $40,820 General Fund (Salary & Benefits, Full Year) (Salary Only, Half Year) Council Should Consider Motions to approve, table, or deny the following: • The hiring of Isaac Davis to the position of Building and Code Enforcement Inspector at Grade 12, Step 1, and at Year 0 on the PTO scale. Discussion The City Council authorized staff to post for a building and code enforcement inspector position at their March 9, 2026 meeting. The City received a total of 13 applications and brought forward 8 candidates for a first round interview (only 7 were interviewed due to one candidate being a no-show for their interview). Staff subsequently conducted a second interview with three candidates and it was determined Isaac Davis is the best candidate for the position. He has been extended a conditional offer letter that is pending Council approval. Isaac brings construction experience to this position as a general contractor as well as assisting with nuisance and fire code related inspections while with the St. Anthony Fire Department. Budget Impact This role is currently budgeted for and this hiring will not adversely affect the budget. Attachment N/A Page 1 of I CONSENT ITEM - 8E MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Jen Estling, Deputy Clerk SUBJECT: Authorizing Purchase of Residential Recycling Carts from Cascade Engineering Budgeted Amount: Estimated Amount: Funding Source: $20,000 Grant Award $100,000 Ramsey County PEIG Council Should Consider Motions to approve, table, or deny the following: • Authorizing purchase of residential recycling carts from Cascade Engineering Background Ramsey County provides financial assistance to public entities for the purpose of creating and implementing innovative programs to increase source reduction and residential recycling efforts, initiate residential organic management programs, expand public space recycling and address bulky waste management through the Public Entity Innovation Grant (PEIG). Eligible applicants include municipalities, Independent School Districts, park boards, watershed districts, libraries and other public entities in Ramsey County. The City has been awarded PEIG funds in the amount of $100,000 to purchase recycling carts. Per the City's Purchasing Policy, Staff received quotes from three vendors; Cascade Engineering, Toter, and Rehrig Pacific Company. We asked for pricing on a full trailer with 3/4 of the delivery being 64-gallon carts and 1/4 being 96-gallon carts. Following a review of the submitted quotes, Cascade Engineering is the most cost-effective option, maintaining the lowest average unit price. Page 1 of 2 Cascade Engineering Size Quantity Avg Price Per Cart Total 64 Gal I on 550 $ 45.99 $25, 294.50 96 Gal I on 190 $ 50.99 $ 9,688.10 740 Shi p p i ng $ 1,995.00 $36,977.60 Rehrig Pacific Company Size Quantity A/g Price Per Cart Total 65Gallon 468 $ 52.30 $24,476.40 95 Gal I on 182 $ 56.59 $10,299.38 650 chipping $ 1,500.00 $36,275.78 Toter Size Quantity Avg Price Per Cart Total 64Gallon 648 $ 54.50 $35,316.00 96 Gal I on 156 $ 61.00 $ 9,516.00 804 9iipping $ 4,325.59 $49,157.59 Cascade Engineering is the same vendor we purchased the City's original municipal recycling cart inventory from and they have a product warranty. Per our contract with Walters Recycling and Refuse, they will serve as the City's agent for purposes of implementing cart warranty service and replacements. Moreover, Cascade is the only vendor with a buy-back program. At the end of their useful life, carts can be returned to Cascade to be recycled, processed and manufactured into new carts. Cascade will buy back carts for the price of scrap polyethylene at the time. Walters has confirmed they have the storage space to accommodate cart fulfillment through the grant funds. Staff recommends purchasing one full trailer from Cascade Engineering now and a second full trailer before the grant term ends. Budget Impact The grant will cover up to $100,000 of the cost to acquire municipal recycling carts. The 2026 budget allocated $20,000 for recycling carts. On April 13, 2026 Council directed Staff to complete a budget amendment to recognize $100,000 in grant revenue and increase expenditures by $80,000, bringing the total project capital outlay to $100,000. This action resulted in a $20,000 net positive impact on the Recycling Fund's ending fund balance. Attachments Attachment A: Cascade Engineering quote Page 2 of 2 CASCADE ENGINEERING e.AscADE 5050 33rd Street SE GRAND RAPIDS, MI 49512-2068 United States 616-975-4800 Attachment A Quote Number Rev Q45791 1 1 3/4/2026 4/10/2026 4/30/2026 Sold To Ship To Purchase Order MU54381 MU54381 QUOTE Sales Quote Sold To Ship To CITY OF ARDEN HILLS CITY OF ARDEN HILLS ATTN: RYAN STREFF ATTN: RYAN STREFF 1425 KIRKWOLD DR. 1425 KIRKWOLD DR. ARDEN HILLS, MN 55112 ARDEN HILLS, MN 55112 United States United States Attention Attention Salesperson REGION #23-LAURIE SCHREINER Email: laurie.schreiner@cascadeng.com Phone: (612) 616-5089 Ship Via TL FOB Point ARDEN HILLS, MN Remarks SOURCEWELL 120324-CEI Currency USD Ln Item Number Due Date Qty Quoted Qty to Release 1 6490487 550.0 EA 550.0 EA CART 64 BLK/CITY ARDEN HILLS/LID GRN MOSS/HS/NM 2 9696426-11-10STK 190.0 EA 190.0 EA CART 96 BLK/ARDEN HILLS/ LID GRN MOSS/HS QUOTE SUMMARY Currency USD Price Extended Price 45.99 25,294.50 50.99 9,688.10 Line Total Shipping Taxable -Shipping Total Tax Total All sale transactions are subject to Cascade Cart Solutions, a Cascade Engineering Company, Standard Terms and Conditions of Sale, published on our website https://www.cascadeng.com/sites/default/files/cascade-engineering-terms and -con d itio ns-of-sa le_0. pdf 34,982.60 1,995.00 0.00 0.00 0.00 36,977.60 4/10/2026 1 / 1 2:05:09 PM C CASCADE engineering CASCADE CART SOLUTIONS PRODUCT WARRANTY Cascade Cart Solutions, a division of Cascade Engineering, Inc. ("Cascade") warrants that the products listed below shall be free from defects in materials and workmanship for the applicable period. This warranty does not cover negligence, abuse or normal wear and tear, which include but are not limited to the examples provided below. This warranty shall be voided by any alterations, modifications, or unauthorized repairs to the product(s); or, as a result of any abuse, neglect, misuse or the resale of the products. Purchaser must make all warranty claims within the applicable period. Cascade shall, at its option, repair or replace such defective product(s) or part(s) thereof, or refund the purchase price of the product(s). Repairedor replaced product(s) or part(s) are warranted for the balance of the original warranty period of the original product(s) or part(s). Purchaser shall be responsible for any labor costs incurred to install replacement parts and reassembly, if required. Replacement products and/or parts provided under this warranty are guaranteed only for the remaining period of the original warranty. Cascade reserves the right to inspect in person, or request photos, to verify the existence of a covered defect. Purchaser shall promptly notify Cascade of any failures under this warranty by completing a warranty request form, which is available at www.cascadecartsolutions.com. THIS LIMITED WARRANTY IS GIVEN ONLY TO THE ORIGINAL PURCHASER; IT MAY NOT BE TRANSFERRED OR ASSIGNED AND DOES NOT EXTEND TO ANY SUBSEQUENT PURCHASER OR TRANSFEREE OF THE PRODUCT(S). THIS WARRANTY IS IN LIEU OF ANY OTHER WARRANTY, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITATION TO THE FOREGOING, CASCADE SHALL NOT UNDER ANY CIRCUMSTANCES BE LIABLE TO PURCHASER OR ANY THIRD PARTY FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES BASED UPON BREACH OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE, STRICT TORT, OR ANY OTHER LEGAL THEORY. EXAMPLES OF NORMAL WEAR AND TEAR (including but not limited to): • Scratches, cuts or scores from any source. • Accumulation of dirt or any other similar substance. • Normal deterioration of metal parts during services. • Normal discoloration due to atmospheric exposure or water conditions. • Appearance of rust on steel parts. • Damage caused by rodents, squirrels or other wildlife/animals. EXAMPLES OF NEGLIGENT OR ABUSIVE USE (including but not limited to): • Exposure to heat which may result in burns, scorches, melting. • Exposure to chemicals such as solvents, petrochemicals, paints, or acids. • Major impacts such as being hit by a vehicle. www.cascadecartsolutions.com C CASCADE engineering Improper storage such as storage in stacks, on lids, near heat or chemicals, outside uncovered withoutlid on, or in any area where damage may occur. • Improper handling such as dropping cart stacks off delivery trucks, dragging over rough surfaces, stacking with wheels on, forcing through narrow openings, allowing packer mechanism to hit cartduring dumping cycle. • Improper handling by automated arms such as any scratches, cuts, creases, scores, cracks or breaks from a maladjusted automated lift arm or semi -automated dumper, including squeezing lid with armand dropping cart into packer or possible wheel/axle damage and including excessive lift speed including any lift speed faster than six seconds for full lift -dump -down cycle. • Failure to properly open or secure lids when emptying, handling or moving carts. • Improper use such as any use other than for storage, transport, and dumping normal single unit residential solid wastes and curbside recyclables collection, including such improper use as: construction, industrial, landscaping, liquid storage/transport, bulk solids storage/transport, recreational, commercial, food service and institutional applications. WARRANTY PERIODS AND OTHER PRODUCT -SPECIFIC DETAILS STANDARD CARTS: Ten (10) years from the date of shipment to Purchaser. Specifically excluded are carts: used as crew carts; dumped manually or with mechanical lifting/dumping devices that do not meet ANSI requirements; or used for any purpose other than residential solid waste and curbside recyclables collection. BASIC BLACK CARTS: Three (3) years from the date of shipment to Purchaser. Basic Black Carts are also warranted against insufficient resistance to weathering while in normal use. For purposes of this warranty, "normal use" is considered to be the collection of residential solid waste in conjunction with an approved semi -automated or fully automated mechanical lifting device. If a dumping device other than one approved by Cascade is to be used for semi - automated or fully automated dumping, written approval of that brand andspecific model of dumping device must be obtained from Cascade prior to use. Adjustments or modifications may be required for approval. POLY DURA KAN REFUSE CONTAINERS: Three (3) years from the date of shipment to Purchaser. Specifically excluded are any attached hardware, lids or casters. At temperatures reaching -20F or below, precautions andrestrictions should be taken on containers during lifting and/or dumping because the material becomes brittle, which could create breakage and possible voiding of warranty. CURBSIDE RECYCLING CONTAINERS: Five (5) years from the date of manufacture. GRAVITY LOCKS: Five (5) years from the date of shipment. If Cascade chooses to replace the gravity lock andthe original type is no longer available, a comparable gravity lock will be provided instead. www.cascadecartsolutions.com BUY BACK PROGRAM 4CASCADE cart solutions a cascade engineering company As one of the largest Certified B Corps in the world, the Cascade Engineering Family of Companies is dedicated to the triple bottom line. At our core, we believe that business can have a profound and positive impact socially, environmentally, and financially. Finding something good to do is not merely a cliche or catch phrase, it is a driving force behind all we do. Within Cascade Cart Solutions, we apply this by taking responsibility for the containers we produce. BUY BACK: EXTENDED PRODUCER RESPONSIBILITY Cascade Cart Solutions certifies that all Cascade carts are recyclable. At the end of the cart's useful life, Cascade will buy back the cart per the price of scrap polyethylene at the time. Please remove all hardware and wheels from the cart, and save for future replacement part needs. Embedded refuse must be removed from the containers; the carts should be cleaned and stacked in preparation for transport. Cascade will arrange for pick-up and transport to the recycling facility. Cascade will also accept other HDPE injection molded carts and bins for this program. CART RECYCLING: CLOSING THE LOOP Recycled plastic comes full circle. Cascade Cart Solutions helps haulers and municipalities reduce their environmental footprint by manufacturing curbside carts for solid waste collection, and recovering and recycling those carts at the end of their useful lives. As a triple bottom line company, our vision is to enable our customers to reach zero waste not only in the recovery of materials, but also in their business operations. This includes retrieval of used carts to upcycle them into new products. Cascade carts offer exceptional durability, improve collection efficiency, and maximize landfill diversion - all while being 100% recyclable. At the end of their useful life, carts can be returned to Cascade to be recycled, processed, and manufactured into new carts that will be rolled to curbs across the country - closing the loop on plastics recycling. For more information contact your Regional Sales Manager or 800.968.2278. RECOVER & RECYCLE ro■-i� •®RECYCLINOP * 1� ASSEMBLE & USE kv SHRED & PROCESS IIIIIIIIIIIII �l PURCHASE & SHIP 11 MOLD & MANUFACTURE CONSENT ITEM - 8F -AX�EN HILLS MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Julie Hanson, Assistant to the City Administrator/City Clerk SUBJECT: Resignation of Kate Olson from the Parks, Trails, and Recreation Committee (PTRC) Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motions to approve, table, or deny the following: • Acceptance of Resignation of Kate Olson from the Parks, Trails, and Recreation Committee (PTRC) Background/Discussion On April 15, 2026 Committee member Kate Olson submitted her resignation from the PTRC. The City would like to recognize and thank Ms. Olson for her service to the residents of Arden Hills. Budget Impact N/A Attachments N/A Page 1 of 1 CONSENT ITEM - 8G MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Julie Hanson, Assistant to the City Administrator/City Clerk SUBJECT: Resolution Appointing Clara Bitzer to the Parks, Trails and Recreation Committee (PTRC) Budgeted Amount: Actual Amount: Funding Source: Council Should Consider Motions to approve, table, or deny the following: • Resolution 2026-025 Appointing Clara Bitzer to the Parks, Trails and Recreation Committee (PTRC) Backaround/Discussion Clara Bitzer applied to serve as a member of the PTRC. Jess Skalicky, Parks and Recreation Manager; SJ Julius, PTRC Chair; and Liz Johnson, PTRC member, conducted the interview. Staff recommends appointing Clara Bitzer to the PTRC for a term ending December 31, 2028. Attachment Attachment A: Resolution 2026-025 Page l of 1 -dd Qresent-� 4� QaS ^P Attachment A b NON CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO.2026-025 A RESOLUTION APPOINTING CLARA BITZER TO THE PARKS, TRAILS AND RECREATION COMMITTEE (PTRC) FOR A TERM EXPIRING DECEMBER 31, 2028 WHEREAS, the City Council appoints residents to serve in an advisory capacity to the various Commissions or Committees; and WHEREAS, the Parks, Trails and Recreation Committee (PTRC) currently has openings for membership on the committee. THEREFORE, BE IT RESOLVED that the Arden Hills City Council appoints Clara Bitzer to serve on the PTRC with terms ending December 31, 2028. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 27TH DAY OF APRIL 2026. David Grant, Mayor ATTEST: Julie Hanson, City Clerk To view the final document, access adopted Resolutions via Arden Hills Public Laserfiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage. CONSENT ITEM - 8H 75 Years lu 11111 Eel tIA-1011111u I DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer SUBJECT: Storm Sewer Rehabilitation Project — Professional Services Agreement with I & S Group, Inc. Budgeted Amount: Actual Amount: Funding Source: $105,350 $21,500 General & Utility Funds Council Should Consider Motions to approve, table, or deny the following: • Professional Engineering Services Proposal from I & S Group, Inc, for the Chatham Trail Area + Miscellaneous Storm Sewer Improvements in the amount not -to -exceed $21,500. Backi!round/Discussion Within the 2026 Public Works Maintenance Plan (PWMP), staff has identified several areas that are in need of rehabilitation related to storm sewer. Attachment A consists of pages 28-30 and 32 of the 2026 PWMP showing the failing infrastructure around the Chatham Trails and the Valentine Crest neighborhood. There is also a collapsed culvert in the Thom Drive/Court area that needs to be addressed. The rehabilitation work is beyond typical maintenance repairs and will require designed plans and specifications to be competitively bid. City staff coordinated with I & S Group (ISG) to provide a proposal for professional services provided as Attachment B. Page 1 of 2 City Staff recommends the City Council approve the professional services proposal in the amount not -to -exceed of $21,500 with ISG to begin with the project. Budget Impact The total budget for engineering services is $105,350 for 2026, which is divided between the General Fund and all Utility Funds. Attachments Attachment A — 2026 PWMP repair maps Attachment B — ISG Proposal Page 2 of 2 Attachment A Televise the storm line within the south ROW of Red Fox Rd at International Paper. There is currently a visible sink hole (shown below) over the storm pipe. Coordinate repair of the pipe and backfill the sink hole. X2 Investigate Arden Manor Park Drainage to MnDOT ROW 20 FTE labor hours required; 2 FTEs required; high priority. Locate and clear any debris from the outlet near MnDOT ROW/discharge area from Arden Manor. The goal is to promote drainage with routine maintenance, if possible. Culvert Rehabilitation at Chatham Open Space Through inspections, Public Works has identified four culverts within the Chatham Open Space that need rehabilitation. Below are the details for the maintenance project. ** All the locations will be contracted as one project.** Repair and clean weir; clean out culvert of debris; replace riprap and fabric; remove trees, debris, and delta of sediment.1 Last edited by Lu—Miller6 on 2/26/2024, 1:41 PM. 28 Repair and clean weir; clean the culvert of debris; replace riprap and fabric; remove trees, debris, and delta of sediment. Last edged by Lucas.Miller6 on 2/26/2024, 1:39 PM. Excavate to expose the FES for a buried 12" pipe. Clean the pipe and install new fabric/ rip rap. Last ed,ted by Lucas.Miller6 on 2/26/2024, 2:03 PM. 29 Sleeve with new plastic pipe extend new pipe by 10 feet at both ends, install aprons and rip rap, and stabilize the slope. Currently a 36" corrugated pipe, has holes in the bottom. Patch the trail over the excavation as needed. Inspection notes- Repair collapsed retaining wall; clean out culvert of debris; replace riprap and fabric; replace entire pipe which is rotted out; rebuild trail. Last edited by Lucas.Miller6 on 2/26/2024,1:32 PM. Carryover Projects from 2025 (Priority scheduling for spring/early summer for these projects) PW will review the missing SAFL baffle within the CB on Glenview Ave that discharges to Valentine Park. (Carryover from 2024) 20 FTE labor hours required; 2 FTEs required; high priority. 30 ✓ ✓ ✓ zo �, 1 ✓ JAN,Er C; r o� ok Y ,E p�— ]tin�]n�, k 2025 Contract iN - W JP R inr tre �rC oficw ok U- y kRole �c doSho�s=_s outh side of LVR will b dealt with by the ❑ - 2 ^aRF on Ne Trail COnsWCUOn /� • an] arc - `" „1 a.] iC'IaaJ L E .�\,Th� PW Storm Sewer Maint - 2023 v�. Storm Structure Repair 20 FTE labor hours required; 2 FTEs required; low priority. The map below outlines a project related to the 2024 PM that PW was unable to complete in 2024. The structure highlighted is a possible contractor project that would be coordinated through PW. 32 Attachment B April 10, 2026 David Swearingen, PE Public Works Director/City Engineer City of Arden Hills, Minnesota 1245 W Highway 96 Arden Hills, MN 55112 651-792-7847 dswearingen@cityofardenhills.org RE: Professional Engineering Services Proposal Chatham Trail Area + Miscellaneous Storm Sewer Improvements Dear David, Following our recent site meeting, I & S Group, Inc. (ISG) is pleased to provide this proposal to assist the City of Arden Hills with preparation of plans and specifications for storm sewer improvements in the Chatham Trails area along with several additional maintenance -related drainage repairs identified within the Public Works Annual Maintenance Plan. The intent of this effort is to bundle multiple localized drainage repairs into a single construction contract to improve bidding efficiency, reduce administrative effort, and address known system deficiencies in a cost-effective manner. Improvements focus on restoring drainage function, stabilizing outlets, replacing failing pipe segments, and reducing ongoing maintenance needs. SCOPE OF SERVICES Task 1 - Project Coordination and Field Review ISG will review available record drawings, televising information, and observations from the recent site visit to confirm project limits and develop practical repair approaches. Coordination with City staff will ensure improvements align with maintenance priorities and available funding. Task 2 - Preliminary Design ISG will prepare plan sheets and quantity calculations for the scope of work on Chatham Trails area improvements along with the following maintenance locations: Chatham Trails Area • Topographic survey of trail area from cul de sac to about 100 ft west of the culvert. • Targeted storm sewer and drainage improvements identified by Public Works staff • Repair or replacement of failing storm culvert. • Review and design of replacement steps along existing trail. • Spot grading to improve drainage conveyance • Restoration as needed following improvements Near 4109 Valentine Crest • Remove accumulated sediment upstream of structure • Repair apron and structure • Install filter fabric and rip rap stabilization I & S Group, Inc. 1 7900 International Drive + Suite 550 + Bloomington, MN 55425 + 952.426.0699 1 • Repair apron north of Valentine Crest • Clean sump structure • Clean downstream ditch to restore drainage capacity 1784 Janet Court • Repair apron • Install rip rap and filter fabric stabilization • Excavation to improve drainage flowline and outlet conditions • Tree removal within drainage easement as needed Apron off Lake Valentine Road • Repair undermined apron • Install filter fabric and rip rap stabilization 2030 Thom Drive / Thom Court Area • Remove and replace existing catch basin • Replace failing corrugated pipe from catch basin to outlet apron (estimated 12-inch diameter) • Replace outlet apron and stabilize discharge area • Grading adjustments to provide positive drainage • Field investigation to confirm pipe alignment and depths • Limited topographic survey may be required due to lack of record drawings Improvements will utilize standard details where possible to reduce design time and simplify contractor bidding. Task 3 - Specifications and Construction Documents ISG will prepare front-end documents, technical specifications, and construction documents necessary to bid the work as a single package. Bid documents will include: • Bid schedule items and quantities • Technical specifications for storm sewer repair, rip rap, fabric, excavation, and structure replacement • Traffic control requirements where applicable • Coordination notes for adjacent property considerations • Standard construction notes Task 4 - Bidding Support We anticipate holding a public bid opening for this process, but if engineer's estimate is below the $175,000 we would recommend sending out request for quotes directly to contractors. ISG will assist the City during bidding by: • Hosting bid documents on QuestCDN or site preferred by City. • Responding to contractor questions Architecture + Engineering + Environmental + Planning I ISGlnc.com 2 • Preparing addenda if needed • Holding bid opening and assisting with bid tabulation review ASSUMPTIONS + EXCLUSIONS • Improvements are limited to maintenance -type repairs and localized storm sewer replacement. • Survey effort is assumed to be limited in scope to locating storm structures and pipe alignment where record drawings are not available. • Full drainage study or modeling is not included. • Easement acquisition is not included. • Permitting is not anticipated but can be added if required. • Construction administration services are not included. • Geotechnical investigation is not included. SCHEDULE • April 2026 - Field Survey • May 2026 - Preliminary & Final Plans • June 2026 - Bid Opening • August -October 2026 - Construction COMPENSATION ISG proposes to provide the scope of work described within this proposal for compensation in accordance with the following schedule. Anticipated reimbursable expenses such as travel time, mileage expenses, and printing costs are included. Project Coordination & Field Review $5,500 Preliminary Design $7,500 Specifications & Construction Documents $6,000 Bidding Support $2,500 ADDITIONAL SERVICES ISG's goal for this proposal, like its services, is to be flexible in meeting the requirements of this project. Upon request, ISG can provide a subsequent proposal to assist with additional professional design and construction phase services needed to support this project as it moves forward. Architecture + Engineering + Environmental + Planning I ISGlnc.com 3 ISG appreciates the opportunity to provide a solution tailored to the needs of City of Arden Hills. Upon acceptance, please sign the acknowledgment box and return a copy of the proposal to our office. We look forward to providing you with responsive service, a collaborative experience, and timely delivery. Sincerely, ake Guzik, Civil Engineer 612.353.7042 Jake.Guzik@ISGInc.com Applicable Contract The General Terms and Conditions applicable to this Proposal are available at the link below and are hereby accepted and incorporated herein by reference. Upon acceptance of this Proposal, the parties can proceed with the project based on this signed Proposal, per its General Terms and Conditions, or for more complex projects, ISG, at its discretion, will prepare and require the use of an AIA or EJCDC Contract that will govern the project. ISG's compensation does not include sales or use taxes. Additional information can be found in our General Terms and Conditions. bit. ly/202 6-te rms-isg Acknowledgement of Acceptance This proposal is valid for 30 days. Accepted this day of 2026. Company (Print): Name (Print): Title (Print): Signature: Architecture + Engineering + Environmental + Planning I ISGlnc.com 4 CONSENT ITEM - 8I MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer SUBJECT: Cooperative Agreement with the City of Roseville for trunk watermain upgrade and trail improvements Budgeted Amount: Actual Amount: Funding Source: $800,000 (watermain) $1,089,713 (watermain) TCAAP $80,000 (trail) $89,492 (trail) PIR — Parks Total: $1,179,205 (engineer's estimate) $299,205 Over Budget Council Should Consider Motions to approve, table, or deny the following: Cooperative Agreement PW2026-09 with the City of Roseville and the City of Arden Hills for watermain and trail improvements on Hamline Avenue between County Rd C and Snelling Avenue. Backaround/Discussion On November 13, 2023, the City Council entered into a Cooperative Agreement for the construction of watermain on Hamline Avenue with the City of Roseville. Since then, Roseville added trail construction improvements to the project which then Arden Hills agreed to continue the trail section from the Roseville border and connect to its existing trail system at Hamline Ave. and Hamline Ave. N. The project area is shown in Exhibit B within the Cooperative Agreement PW2026-09 (Attachment A). Arden Hills has an existing 16-inch diameter trunk watermain that extends from Roseville at Hamline Avenue and Glenhill Rd that feeds both Arden Hills water towers. Within Roseville, there is an existing 12-inch watermain that connects to the Arden Hill's 16-inch watermain. The existing conditions are adequate for Arden Hill's current demand for water, but Page 1 of 2 the purpose of this project is to upgrade the watermain within Roseville from 12-inch to 16-inch to supply the required water demand for future development at Rice Creek Commons/TCAAP. This project is anticipated to be constructed in 2026 or 2027. The timing is due to coordination with Ramsey County's pavement rehabilitation project and the trail improvements along Hamline Avenue from County Rd C to Snelling Ave. Ramsey County requested that the work be completed prior to or concurrently with their project so the new pavement is not disturbed. Cooperative Agreement PW2026-09, Attachment A, outlines the responsibilities for costs, ownership, and maintenance of the project elements and is in addition to the previous Cooperative Agreement with Roseville dated November 13, 2023. Cooperative Agreement PW2026-09 is required for the project to move forward. Budget Impact The 2026 CIP has $800,000 budgeted for the watermain improvement portion of the project (Attachment B) and $80,0000 is budgeted for the trail improvement portion of the project. The engineer's estimate is provided as Exhibit A within the Cooperative Agreement, which shows the total for the Arden Hills portion of watermain improvements at $1,089,713.67 and the Arden Hills portion of trail improvements at $89,491.71, for a total project cost of $1,179,205.38. Roseville does not have a need to replace or upgrade this segment of watermain for their City needs; therefore, the costs related to upsizing the pipe, valves, fittings, meter manhole and related restoration will be fully funded by Arden Hills per the attached Cooperative Agreement. Related to the watermain, Roseville has offered to take the costs of engineering design and construction management, as well as other items directly related to Roseville such as hydrant replacement and residential water service replacement. Related to the trail, Arden Hills will be responsible for a percentage of engineering design and construction management as outlined in the Cooperative Agreement. The cost of this project will be incorporated into future charges relating to the Rice Creek Commons/TCAAP Project and will be recouped when the development moves forward. A separate Cooperative Agreement with Ramsey County is being negotiated as a source of reimbursement to the City for the negotiated costs of the Roseville trunk watermain costs. To manage the immediate cash flow need, the City will issue General Obligation Utility Bonds. Staff will work with the City's financial advisor to provide a detailed bonding schedule to Council for review and consideration when the project schedule is finalized. With that memo, staff will provide scenarios for Council consideration on repayment of the debt service. Attachments Attachment A: Cooperative Agreement with Roseville Attachment B: 2026 CIP detail sheet for watermain Attachment C: 2026 CIP detail sheet for trail Page 2 of 2 Attachment A Agreement PW2026-09 RAMSEY COUNTY COOPERATIVE AGREEMENT WITH THE CITY OF ROSEVILLE AND THE CITY OF ARDEN HILLS FOR Pavement Preservation and Trail Construction on Hamline Avenue (County State Aid Highway 52) between County Road C and Snelling Avenue State Aid Project (S.A.P.) 160-020-057, 187-020-027, and 062-650-017 Total Project Construction Cost: $3,719,000 Attachments: City of Roseville Cost: $756,000 A — Engineer's Estimate City of Arden Hills Cost: $1,179,000 B — Plan Title Sheet Ramsey County Cost: $1,784,000 C — Storm Sewer Plans This agreement ("Agreement") is between the City of Roseville, a municipal corporation ("Roseville"), the City of Arden Hills, a municipal corporation ("Arden Hills"), and Ramsey County, a political subdivision of the State of Minnesota ("County"), each individually a "Party" and collectively the "Parties," for pavement preservation and trail construction on Hamline Avenue (County State Aid Highway 52) between County Road C and Snelling Avenue ("Project"). RECITALS The Project is identified in Ramsey County's 2026 — 2030 Transportation Improvement Program. 2. Hamline Avenue, in the area affected by the Project, is designated County State Aid Highway (CSAH) 52. 3. The Project has been designated by the Minnesota Department of Transportation (Mn/DOT) as eligible for County State Aid Highway funds. 4. The Project has been designated as State Aid Project (S.A.P.) 160-020-057, 187-020- 027, 062-650-017 and County Project PW2026-09 . 5. A portion of the subject road segment is located within the City of Roseville and a portion of the subject road segment is located within the City of Arden Hills. /_TC]044Ji14LIk169 Responsibility for Design Engineering 1.1. Plans, specifications, and proposals will be prepared in accordance with Mn/DOT State Aid requirements. PW 2026-09 Page 1 of 9 Hamline Avenue Construction Cooperative Agreement 1.2. Roseville will prepare plans, specifications, and proposals for the Project, which will include, among other things, the proposed resurfacing, multi -use trail, alignment, profiles, grades, cross sections, paving, concrete curb and gutter, storm sewer, pedestrian curb ramps, turf establishment, and utility replacement and adjustments. 1.3. Plans for the Project showing proposed construction will be presented to the County and Arden Hills for their approval, not to be unreasonably withheld, and will be on file at Roseville's Public Works Department. 1.4. Any costs associated with Project revisions after the completion of plans and specifications will be paid for by the Party requesting the revisions. Revisions are subject to approval by Roseville and the impacted Party. 2. Responsibility for the Right of Way Plan and Acquisition 2.1. No permanent easement or right of way are needed for this project. Roseville is responsible for acquiring any temporary easement or right of entry needed for construction in accordance with Mn/DOT State Aid standards. 3. Procurement and Award of Contract 3.1. County and Arden Hills each appoint Roseville as agent to obtain bids, enter into a contract for the design and construction of the work, and supervise the work performed on the Project for compliance with the Project construction documents and this Agreement. 3.2. Roseville will take bids in accordance with state law and Roseville procedures. 3.3. Roseville will prepare an abstract of bids and a cost participation summary based on the lowest responsible bidder's proposal, and will provide the same to County and Arden Hills for their approval, not to be unreasonably withheld. 3.4. Roseville will request and obtain County and Arden Hills's approval, not to be unreasonably withheld, to award a contract to the lowest responsible bidder. 3.5. Upon approval by the County and Arden Hills, Roseville will award the approved contract, and pay the contractor from Roseville Municipal State Aid Highway and local funds identified for the Project. 4. Responsibility for Construction Engineering 4.1. Roseville shall perform or contract the performance of the construction engineering for all elements of the Project, including required permitting. 5. Project Costs PW 2026-09 Page 2 of 9 Hamline Avenue Construction Cooperative Agreement 5.1. Except as provided herein, the County, Roseville, and Arden Hills will participate in the costs of construction in accordance with the Ramsey County Cost Participation Policy and approved in the 2026 — 2030 Ramsey County Transportation Improvement Plan. If there is a conflict between the Cost Participation Policy and this Agreement, this Agreement will prevail. 5.2.A list of the construction pay items and percentages of funding responsibility as well as the total estimated Project cost per Party is attached as Exhibit A, Cost Participation Based on Engineer's Estimate. Quantities and unit prices in Exhibit A are estimates. Actual costs shall be based on the contract unit prices and the quantities constructed. 5.3. Mobilization, Erosion Control Supervisor, and Traffic Control, as listed on Exhibit A, are defined collectively as the "Prorated Items." Each of Party's respective percentage of the Prorated Items is calculated as follows: % Prorated Items = (respective Party's cost excluding the Prorated Items cost) (total Project cost excluding the Prorated Items cost) The costs in the Prorated Items calculation will be based on contract unit prices and quantities at the time of contract award. No adjustments in the percentages will be made if unit prices or quantities vary during construction. 5.4.As shown in Exhibit A, the full depth reclamation and associated curb construction of and along Hamline Avenue are part of the County's Pavement Preservation Plan and are not a full reconstruction. Costs of construction of the trail, and of associated curb and storm sewer reconstruction or repair work required because of trail construction, will be split evenly between the County and the respective city Party within whose city limits such work occurs. 5.5. Design Engineering Costs 5.5.1. County shall pay Roseville a design engineering fee equal to 6% of the County's share of the project items identified in Exhibit A (note 2). County's estimated design engineering fee is $107,000. 5.5.2.Arden Hills shall pay Roseville a design engineering fee equal to 12% of Arden Hills's share of the trail construction items identified in Exhibit A (note 3) 5.5.3. Design engineering fees shall be calculated based on the quantities and unit prices at the time of contract award 5.6. Right of Way Acquisition Costs PW 2026-09 Page 3 of 9 Hamline Avenue Construction Cooperative Agreement 5.6.1. Roseville will pay 100% of the cost to administer any temporary easement or right of entry acquisition. 5.7. Construction Engineering Costs 5.7.1. County shall pay Roseville a construction engineering fee equal to 12% of the County's share of the items identified in Exhibit A (note 2). County's estimated construction engineering fee is $214,000. 5.7.2.Arden Hills shall pay Roseville a construction engineering fee equal to 12% of Arden Hills's share of the trail construction items identified in Exhibit A (note 3) 5.7.3. Construction engineering fees shall be calculated based on the final contract quantities and unit prices. 6. Payment Schedule 6.1. Design engineering fees will be invoiced at the time of contract award. 6.2. Roseville will invoice County and Arden Hills for construction costs incurred on a monthly basis or as determined by the payment schedule for the contractor. 6.3. Construction engineering fees will be invoiced at the time of substantial project completion, as determined by Roseville. 6.4. Payment will be made within 30 days of receipt of an invoice. 7. Ownership and Maintenance Responsibility for Project Elements 7.1.Ownership and Maintenance Responsibility of the Roadway 7.1.1.The County will own and maintain the roadway and associated roadway elements location within the County Right of Way, except as detailed below. 7.2.Ownership and Maintenance Responsibility of the Storm Sewer (catch basins and leads, main, infiltration systems, ponding, water treatment). See graphical depiction on Exhibit C. 7.2.1. Roseville and Arden Hills shall own the following components of the storm sewer system within their respective city limits: i. Trunk line ii. Trunk line manholes iii. Surface drains located outside of the County road right-of-way and associated leads iv. Trunk line outfalls, except as noted in 7.2.2. PW 2026-09 Page 4 of 9 Hamline Avenue Construction Cooperative Agreement 7.2.2.The County shall own the following components of the storm sewer system: v. Catch basins vi. Catch basin leads vii. Cross -culverts viii. Surface drains located within the County road right-of-way ix. Trunk line outfall to Lake Josephine near Hamline and Clarmar intersection as addressed in Ramsey County agreement #PUBW2024-14R. 7.2.3.The City and County shall each maintain the components of the storm sewer system under their respective ownership. 7.3.Ownership and Maintenance of the Water Main and Meter Pit 7.3.1. Water main and meter pit construction related to this project is addressed in the Construction Cooperative Agreement for Construction of Watermain on Hamline Avenue between Roseville and Arden Hills dated November 13, 2023, including amendments. 7.4.Ownership and Maintenance of the Signal Systems, APS 7.4.1. Signals are addressed by the Primary Signal Agreements, and any amendments, between the County and each of Roseville and Arden Hills. 7.5.Ownership and Maintenance of the Trail and Sidewalk 7.5.1.The County will own the trail being built with this project and is responsible for future overlay or reconstruction improvements. 7.5.2. Roseville and Arden Hills will maintain the sidewalk and trail within their respective city limits in accordance with their respective sidewalk and trail maintenance practices, including snow clearing, sweeping, debris removal, vegetation control, panel replacement, settlement adjustments, etc. 8. Arden Hills and County grant Roseville temporary construction permits over all rights - of -way and property owned by each, within the limits of the Project, for use during construction at no cost to Roseville. 9. Roseville, Arden Hills, and County shall indemnify, defend, and hold each other harmless against any and all liability, losses, costs, damages, expenses, claims, or actions, including attorney's fees, which the indemnified Party, its officials, agents, or employees may hereafter sustain, incur, or be required to pay, arising out of or by reason of any act or omission of the indemnifying Party, its officials, agents, or employees, in the execution, performance, or failure to adequately perform the indemnifying Party's obligation pursuant to this Agreement. Nothing in this Agreement shall constitute a waiver by the County, Roseville, or Arden Hills of any statutory or common law immunities, limits, or exceptions on liability. 10. Counterparts: The Parties may sign this Agreement in counterparts, each of PW 2026-09 Page 5 of 9 Hamline Avenue Construction Cooperative Agreement which constitutes an original, but all of which together constitute one instrument. 11. Electronic signatures: The Parties agree that the electronic signature of a Party to this Agreement shall be as valid as an original signature of such Party and shall be effective to bind such Party to this Agreement. The Parties further agree that any document (including this Agreement and any attachments or exhibits to this Agreement) containing, or to which there is affixed, an electronic signature shall be deemed (i) to be "written" or "in writing", (ii) to have been signed and (iii) to constitute a record established and maintained in the ordinary course of business and an original written record when printed from electronic files. For purposes hereof, "electronic signature" also means a manually signed original signature that is then transmitted by any electronic means, including without limitation a faxed version of an original signature or an electronically scanned and transmitted version (e.g., via PDF) of an original signature. Any Party's failure to produce the original signature of any electronically transmitted signature shall not affect the enforceability of this Agreement. 12. This Agreement shall remain in full force and effect until terminated by mutual agreement of the Parties or until its terms are fulfilled and the Project completed. 13. Notice: Any notice to be given hereunder shall be in writing and shall be deemed to have been given when delivered personally or when deposited in the United States Mail, postage prepaid, as follows: If to ROSEVILLE: City of Roseville 2660 Civic Center Dr Roseville, MN 55113 Attention: Jennifer Lowry, City Engineer IUOT_I V 012101:II11603 City of Arden Hills 1245 W. Highway 96 Arden Hills, MN 55112 Attention: David Swearingen, Public Works Director If to the COUNTY: Ramsey County Public Works 1425 Paul Kirkwold Dr Arden Hills, MN 55112 Attention: John Mazzitello, Deputy Director of Public Works THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK. PW 2026-09 Page 6 of 9 Hamline Avenue Construction Cooperative Agreement CITY OF ROSEVILLE, MINNESOTA IN Date: Daniel J. Roe, Mayor Date: Patrick Trudgeon, City Manager THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK. PW 2026-09 Page 7 of 9 Hamline Avenue Construction Cooperative Agreement CITY OF ARDEN HILLS, MINNESOTA Date: Mayor Date: Director of Public Works THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK. 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Wo ^ Nod >i m rn w 2 o z a c NK? 0 o W Iz FN�1 U � 3 W a m m _ ZS'908 S'906 ob'906 0 p e $ M b'906 9EQ908 O + O Z = m w h � e M O uS z UO hw ¢ U o< _ x'¢¢m�a LL O ¢ O W �m��rci ooNN J( W 0p p mo- K z gK92 + O'LO6 O IN� o�rc �O� � M1 Q 3 N U ZO Z K O UK< W W C U O Uow N � (a9 KT > > 3 I �RZ �> o FMZ o+ M yrc3 2026 thru 2030 Attachment B Capital Improvement Plan Arden Hllls, MN Project # 26-W-005 Project Name Trunk Water Main Improvements - Roseville Total Project Cost $800,000 Contact Public Works Director Department Water Department Type Improvement Category Utility Improvements Priority 1 Urgent Status Active Useful Life 60 years TCAAP Yes Description Proposed trunk watermain upgrade to 1,600 feet of existing 12-inch CIP to 16-inch DIP or PVC. Located within the City of Roseville along Hamline Avenue from Josephine Road to Glenhill Road. These improvements will be in coordination with Ramsey County paving & trail construction project along Hamline Avenue. Meter pit and meter improvements. Justification This upgrade is vital to support the future TCAAP development by allowing the future water tower to operate at appropriate water levels. Expenditures 2026 2027 2028 2029 2030 Total Construction/Maintenance 800,000 0 0 0 0 800,000 Total 800,000 0 0 0 0 800,000 Funding Sources 2026 2027 2028 2029 2030 Total TCAAP -WAC/SAC Charges 800,000 0 0 0 0 800,000 Total 800,000 0 0 0 0 800,000 196 Produced Using Plan -It CIP Software Page 71 / 75 2026 thru 2030 Attachment C Capital Improvement Plan Arden Hllls, MN Project # 26-Park-001 Project Name Hamline Avenue N Trail Connection Improvement Total Project Cost $160,000 Contact Public Works Director Department Parks Department Type Improvement Category Park Capital Improvements Priority 3 Important Status Active Useful Life 25 years Description Multi -use grade -separated 10-foot wide bituminous trail improvement approximately 500-feet in length along the East side of Hamline Avenue North from the City of Roseville to the existing trail on Hamline Avenue North in Arden Hills. Justification This trail improvement has been identified as a high priority connection. Coordination with surrounding agencies provides cost effectiveness and anticipated 2026 Expenditures Construction/Maintenance 2026 2027 2028 2029 2030 Total 160,000 0 0 0 0 160,000 Total 160,000 0 0 0 0 160,000 Funding Sources 2026 2027 2028 2029 2030 Total Capital Improvement Funds (PIR) Ramsey County 80,000 0 0 0 0 80,000 80,000 0 0 0 0 80,000 Total 160,000 0 0 0 0 160,000 169 Produced Using Plan -It CIP Software Page 44 / 75 CONSENT ITEM - 8J MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer SUBJECT: Old Highway 10 Trail Improvements — Right -of -Way acquisition and temporary easement costs Budgeted Amount: Actual Amount: Funding Source: $300,000 $81,642 PIR, MSA Council Should Consider Motions to approve, table, or deny the following: • ROW and temporary easement costs for the Old Highway 10 Trail Improvements in the amount of $47,900. Backaround/Discussion On May 27, 2025, the City approved a professional services agreement (PSA) Amendment No. 3 with SRF Consulting Group, Inc. (SRF), which included the task to proceed with the Right -of - Way acquisition and temporary easements administration. The process for Right -of -Way (ROW) acquisition and temporary easement is a requirement of State Aid process and construction needs. The primary PSA tasks are land -only appraisals, trail easement, review of the appraisals, land title for the parcels, negotiation activities, file preparation, field title, and staking of the parcels. SRF has informed City staff that the actual ROW acquisition and temporary easement cost total is $47,900. Staff is recommending the Council approve the total ROW acquisition costs of $47,900. Page 1 of 2 Budget Impact ROW acquisition administrative fees per PSA Amendment No. 3 = $33,742 ROW and temp easement costs = $47,900 Total ROW acquisition costs = $81,642 The ROW acquisition costs are eligible to be funded by Municipal State Aid (MSA). Attachments N/A Page 2 of 2 PUBLIC HEARING - IOA MEMORANDUM DATE: April 27, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Jake Reilly, Community Development Director SUBJECT: Planning Case #26-006 — Public Hearing Required Applicant: City of Arden Hills Request: Ordinance Amendments to Zoning Code Section 1320.16 — Requirements for Affordable Housing (inclusionary housing ordinance) Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Holding a public hearing for Ordinance 2026-007 amending Chapter 13 — Zoning Code, Section 1320, to add a new Section 1320.16 — Requirements for Affordable Housing to address affordability in new residential construction and rehabilitation projects. The City Council will be asked to make a formal decision under New Business Item I IA. Background In the fall of 2025, the City Council requested staff begin developing an affordable housing policy for new residential developments in the City of Arden Hills. Staff prepared several presentations about the history of and existing market conditions related to construction, cost, and affordability of new housing in the nation, state of Minnesota, the Twin Cities metropolitan region, Ramsey County and Arden Hills. At the October 2025 work sessions, the City Council received information about affordable housing in Arden Hills and the housing market nationwide. The memos detailed root causes of the nationwide housing crisis, the effect specific to Arden Hills and potential solutions. The City of Arden Hills Planning Commission has review and recommendation authority over proposed changes to Chapter 13 — Zoning Code and held a public hearing at the April 8, 2026, regular meeting of the Planning Commission. Four residents commented at the public hearing. Page 1 of 6 Staff received one written comment. The commission recommended approval of Ordinance 2026- 007 as amended by the Planning Commission and provided in Attachment A by a 7-0 vote. The following definitions are used to frame the conversations: • Affordable housing — any home that costs less than 30% of a household's income. • Area Median Income (AMI) - the midpoint of household incomes in a specific geographic area. Half of households earn more, and half earn less than this amount. The AMI in the twin cities for a four -person family is approximately $132,400. • Attainable housing - homes/condominiums purchasable by households earning 80-125% of Area Median Income (AMI). This purchase price is about $306,500. • Workforce housing — serves households earning 60-80% AMI. This represents an hourly wage between $38 and $50. • Subsidized and deeply affordable housing — serves households at or below 60% and 30% of AMI respectively, often through government assistance programs. • Naturally Occurring Affordable Housing (NOAH) - describes older homes and/or rental units that are affordable to lower income families due to age or condition. • Missing middle housing — industry term to describe duplexes, triplexes, and small (up to 10 units) apartment buildings compatible with single-family neighborhoods. This type of residential housing has been severely underbuilt since the 1980s. For context, Arden Hills' home values and rents are higher than surrounding communities, driven in part by limited net tax capacity, limited transit options, demand for homes within the Mounds View School District, and constrained supply. Arden Hills homeowners have the benefit of paying lower property taxes than owners of similarly valued homes in neighboring cities. At the December 8, 2025, and January 12, 2026, work sessions, the City Council received additional information about local housing market dynamics and discussed various approaches to increasing the supply of affordable places to live in Arden Hills. That information focused on three market -driven, largely no -cost approaches to increasing Arden Hills' housing supply, set in the context of the affordable housing need the Metropolitan Council estimates Arden Hills must accommodate by 2050, or 221 households earning not more than 60% of AMI (approximately $79,400/year). At the January 12, 2026, City Council work session, staff were directed to bring back a draft ordinance or policy to address requiring affordable units in project proposals. A draft ordinance tailored to Arden Hills' market conditions was developed for discussion purposes. Both new residential construction and rehabilitation of existing multi -family homes are included in the ordinance which is intended to be market -sensitive, avoid negative impacts to the tax base, and address stated concerns about community character. Following discussion and some revisions to draft language at the February 9, 2026, City Council work session, staff were directed to bring a draft to the Planning Commission for public hearing. Table I shows the percentage of required affordable units by affordability level for three versions presented on different dates to the City Council and the Planning Commission represented as: A (provided 2/9/2026 — CC WS); B (provided 3/8/2026 - PC); and C (provided 4/27/2026 — CC Reg). Page 2 of 6 The draft ordinance being considered is included as Attachment A and reflects the discussion at the Planning Commission on March 8, 2026 (represented by C in Table 1). Table 1: Difference in required units by version of draft ordinance Options Income Maximum Minimum % of Units (Choose one) Standard household income A B C 1 Extremely Low 30% AMI - - 5% Income 2 Very Low 50% AMI 5% - 5% Income 3 Low Income 60% AMI 7.5% 5% 7.5% 4 Workforce 80% AMI 10% 10% 10% Housing Discussion Four people spoke at the Planning Commission public hearing on March 8, 2026. Speakers generally expressed support for affordable housing programs and policies in Arden Hills. Speaker comments included several requests for Accessory Dwelling Units to be allowed to be constructed on existing residential properties in Arden Hills; a request to consider lower income thresholds than 60% AMI and seeking homes affordable for people who are retail or manufacturing workers and therefore earn less than 80% of the area median income. Comments about having more affordable housing, including for those who are cost -burdened and are paying more than 30% of their income on housing costs, were also made, including suggesting the city evaluate the potential for other policies and programs. Other comments included support for streamlining the application process, increasing the allowable density in residential areas, considering working with a land trust and generally taking a comprehensive approach to ensuring housing remains affordable. The Planning Commission discussed the impact of these types of ordinances. Commissioners expressed interest in knowing how these policies affect the communities where they have been adopted. Commissioners also spent time discussing the merits of adding levels of affordability to the list of options a developer can choose from and ultimately asked staff to include options to support the construction of extremely low (30% AMI) and very low income (50% AMI) housing units. Planning Commissioners stated an interest in having the City of Arden Hills policy align with Shoreview's inclusionary zoning ordinance, adopted in 2022. Subd. 6.A (Attachment A, page 4) identifies the options for required percentages of affordable units recommended by the Planning Commission. The recommended language and percentages are substantially similar to the Shoreview policy with choices to include 10% of units at or below 80% Area Median Income, 7.5% at or below 60% of Area Median Income and 5% at or below 50% of Area Median Income. In addition, which is not included in the Shoreview policy is an option to provide 5% of the units affordable to those at or below 30% of the AMI. The Planning Commission recommendation also includes two density bonus options in Subd. 8.A (Attachment A, page 6) modeled after Shoreview's requirements that was brought forward by Staff for consideration. The Council February discussion only included one density bonus option. The Page 3 of 6 Planning Commission also requested modifications to the required number of "family size" units in Subd. 6.C.3 (Attachment A, page 5) to be more in line with that adopted by Shoreview. The recommendation reduces the number of required family -size units seen by the Council in February. The motion to recommend the ordinance was passed, 7-0. Several cities in the region have adopted inclusionary housing policies or ordinances, sometimes referred to as inclusionary zoning ordinances or affordable housing ordinances. The tables on the next page show where and what sort of inclusionary zoning policies and/or ordinances have been adopted in the Twin Cities (Table 2a) and how other cities with populations between 3,000 and 50,000 approach affordable housing (Table 2b). Table 2a: Twin Cities suburban communities with adopted inclusionary housing policies Minimum % of Units (Rental) Standard Income Shoreview Bloomington Eden Edina Golden Hopkins Minnetonka St. Louis limit Prairie Valley Park Ext. Low 30% AMI - 5% - - 5% Income 9% or or Very Low 50% AMI 5% 10% 10% 10% 5% 5%' 10% Income or or or or or or Low 60% AMI 0 7.5 ° 15% 20% 15% 10% 10%2 20% Income or Workforce 80% AMI 10% - - - - - - - Housing 1. If no subsidy or if no zoning or comprehensive plan amendment requested 2. If no subsidy and with zoning or comprehensive plan amendment requested Table 2b: Status of other suburban communities between 3,000 and 50,000 population Municipality Inclusionary housing tool status Maplewood No inclusionary housing policy; considering establishing housing trust fund Roseville o inclusionary housing policy; established housing trust fund; partnership with land trust; market study underway New Brighton Inclusionary policy considered at 4/7/2026 council work session; low-income home rehab program recently started North St. Paul None found Little Canada Density bonus in zoning code; substantial work on funding manufactured home im rovements Falcon Heights None found Mounds View None found Vadnais Heights None found White Bear Lake None found Cottage Grove o inclusionary housing policy; density bonuses allowed in PUD when public purpose met Oakdale No inclusionary housing policy; housing study underway Forest Lake No inclusionary housing policy; density bonus up to 15% for affordable units Page 4 of 6 Stillwater None found Hugo None found; housing policy study complete Anoka None found Andover None found Fridley No inclusionary housing policy; low-income home rehab programs recently started Ramsey None found Lino Lakes None found; affordable housing trust fund under consideration Attachment A is the draft inclusionary housing ordinance as recommended by the Planning Commission. Substantive changes from the Council's discussion include changes to percentages of required affordable units as shown in Table 1 above, as well as language designed to clarify the approach and identify additional opportunities to meet the intent of the ordinance, as follows: • Clarifying that developers may choose one or more affordability options • Adding definitions for affordable rent, density bonus unit, and tenant paid rent. • Clarifying that the replacement requirement related to Naturally Occurring Affordable Housing does not require the same percentages as new construction. • Clarifying and refining the distribution and integration section of the draft ordinance for legibility. • Removing erroneous language/typographical errors. • Adding projects developed on property purchased from the City of Arden Hills to the list of qualified projects. • Clarifying the payment -in -lieu option for developers wishing to produce market -rate -only projects, known as a "Total Buy In" fee, an option that has the potential benefit of offering the city the opportunity to direct non -tax -levy funds to the production of affordable homes, • Clarifying and identifying regulations for how parking shall be provided. • Clarifying and identifying what fees or services comprise the sum total of an affordable payment. • Adding a second option for a density bonus for units affordable to those at 60% of AMI (this rental rate targets those who may work retail, are entry-level teachers, firefighters and/or are other essential workers). • Adjusting the number of family size units in each structure to be aligned with Shoreview's adopted policy. Public Comments The City of Arden Hills Planning Commission has review and recommendation authority over proposed changes to Chapter 13 — Zoning Code and held a public hearing at the April 8, 2026, regular meeting of the Planning Commission for the proposed changes to Chapter 13. Four residents commented at the public hearing. One written comment was received from the Twin Cities Housing Alliance. At that time, the commission recommended approval of Ordinance 2026-007 as amended by the Planning Commission and provided in Attachment A by a 7-0 vote. Notice was also published in the Pioneer Press on April 17, 2026, in advance of this meeting. The city has not received any public comments since the Planning Commission reviewed this application at the April 8, 2026, meeting. Budget Impact Page 5 of 6 N/A Attachments • Attachment A: Draft Ordinance 2026-007 Requirements for affordable housing • Attachment B: Planning Commission Memo dated April 8, 2026 • Attachment C: Draft Planning Commission Minutes, April 8, 2026 • Attachment D: Presentation Page 6 of 6 Attachment A Public hearing draft ordinance April27, 2026 ,!It -AR�EN HILLS ORDINANCE NO.2026-007 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA AN ORDINANCE AMENDING CHAPTER 13, ZONING CODE, SECTION 1320 OF THE ARDEN HILLS CITY CODE TO INCLUDE A NEW SECTION 1320.16 REQUIREMENTS FOR AFFORDABLE HOUSING THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA, ORDAINS: SECTION 1. Chapter 13 - Zoning Code, Section 1320 is hereby amended by adding a new subsection 1320.16 Requirements for Affordable Housing and the underlined language as follows: 1320.16 Requirements for Affordable Housing. Subd. 1 The City Council of Arden Hills finds and declares the following: A. The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income (AMID B. Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. C. There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. D. New residential development can accommodate existing demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. E. The preservation of naturally occurring affordable housing_(NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. F. Economic integration of affordable housing within market -rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. Subd. 2 Purpose. The purpose of this ordinance is to: Page 1 of 9 ATTACHMENT A Public hearing draft ordinance April27, 2026 A. Maintain a balanced community that provides housing opportunities for households at all income levels. B. Ensure housing opportunities for employees of businesses located in Arden Hills and the surrounding region. C. Implement affordable housing goals and policies contained in the City's Comprehensive Plan. D. Promote economic integration by including affordable units within market -rate developments. E. Create affordable housing without requiring public subsidies or tax increment financing. Subd. 3 This ordinance is adopted pursuant to: A. Minnesota Statutes & 462.358, subd. la, which authorizes municipalities to adopt ordinances for the purpose of increasingthe he supply of affordable housing using land use mechanisms. B. Minnesota Statutes § 462.358, subd. 11, which authorizes municipalities to enter into agreements requiring affordable housing with established pricing and long- term affordability controls; and C. Minnesota Statutes � 473.859, which requires municipal comprehensive plans to promote creation of affordable housing for low- and moderate -income individuals and families. Subd. 4 Definitions. The following terms shall have the meanings indicated: AFFORDABLE. Housing is affordable when a household pays no more than 30% of gross household income for housing costs, including rent or mortgage payment, utilities fees, and charges. AFFORDABLE RENTS. The rent and utilities for the affordable housing units will be based on payment standards by Zip code using Small Area Fair Market rents, as established by the Metro HRA or, as applicable, MN Housing income limits, US Department of Housing and Urban Development income limits, the Multifamily Tax Subsidy Projects (MTSP) Income Limits are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits or tax exempt housina bonds authorized under the Internal Revenue Code as adiusted annuallv. AFFORDABLE HOUSING UNIT. A dwelling unit that has income and rent restrictions pursuant to this ordinance to ensure affordabilitv for eliizible households. AREA MEDIAN INCOME (AMI). The median household income as most recentlX determined by the U.S. Department of Housing and Urban Development (HUD,) for the Minneapolis -St. Paul -Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, adiusted for household size and number of bedrooms. DENSITY BONUS UNIT. A unit as a result of an increase in density permitted above the per acre limit established by the city code Page 2 of 9 ATTACHMENT A Public hearing draft ordinance April27, 2026 DEVELOPMENT. A new residential or mixed -use development, including construction in phases or stages, for which city approvals are being or have been sought. DWELLING UNIT. One or more rooms designed for residential use by a single household, containing cooking, living, iving, sanitary, and sleeping facilities. ELIGIBLE HOUSEHOLD. A household with annual income at or below 80% of AMI for rental units, or at or below 110% of AMI for ownership units. MARKET -RATE UNIT. A residential dwelling unit not subject to affordability restrictions under this ordinance. NATURALLY OCCURRING AFFORDABLE HOUSING (NOAH). Existingrental ental housing that is affordable to households at or below 60% of AMI without public subsidy, typically_ constructed between 1940 and 1990 and classified as Class B or C real estate pro e SUBSTANTIAL REHABILITATION. Improvements to a property where the cost exceeds 20% of the grope . value excluding land, after improvements. TENANT PAID RENT. The monthly rent for an affordable dwelling unit shall include rent, utility costs and any other non -optional monthly occpancy charges. WORKFORCE HOUSING. Housing affordable to households earning between 60% and 80% of AMI, typically needed by teachers, public safety_ personnel, healthcare workers, and other essential workers. Subd.5 Applicability. A. This ordinance applies to the followingdevelopment evelopment types: 1. New multifamilv residential developments creating 20 or more dwelling units. 2. Mixed -use developments with a residential component of 20 or more dwelling units. 3. Substantial rehabilitation or reconstruction of existing buildings containing 20 or more dwelling units. 4. Conversion of non-residential buildings to residential use creating 20 or more dwelling units. 5. Those developed on property_ purchased from the City of Arden Hills unless a waiver is recommended by the Arden Hills Planning Commission and approved by the Arden Hills City Council. 6. The development must comply with this Inclusionary Housing Ordinance as amended and approved by the city council as of the date the development enters into a development agreement with the city_ B. Calculation of Units/Payment in Lieu For phased developments, the affordable housing requirement shall be calculated based on the total number of units in all phases. Affordable units shall be provided proportionately across phases. Page 3 of 9 ATTACHMENT A Public hearing draft ordinance April27, 2026 When calculating the number of affordable units required, any fraction of 0.5 or greater shall be rounded un to the nearest whole number: fractions less than 0.5 shall be rounded down. It is the strong preference of the city that each new qualifyin dg evelopment provides its proportionate share of affordable housing. However, the city recognizes that it may not be economical or practical in all circumstances to do so. The City Council may waive this requirement, if and when circumstances so dictate, as determined by the city. In lieu of providing affordable housing in each new development, the city may consider a cash payment in lieu of providing affordable housing units, known as a Total Buy In (TBI) fee. The TBI shall be equal to $150,000 per unit rounding up to the next whole unit. The TBI is due in cash or certified funds in full to the City at the time of issuance of the building permit. A buildings permit will not be issued unless the TBI is paid in full. Subd. 6 Affordable Housing Requirement A. New Development Requirements 1. Developments subject to this ordinance shall provide affordable housing units according to the following standards: Options (Choose one) Affordability Standard Maximum household income Minimum % of Units 1 Ext. low income 30% AMI 5% 2 Very low income 50% AMI 5% 3 Low income 60% AMI 7.5% 4 Workforce housing 80% AMI 10% 2. On -site parking shall be provided(either surface or enclosed) for affordable units and shall be included within the affordable sales price and/or affordable rent. At least one enclosed parking stall shall be included in the purchase price of an affordable for -sale unit in the same manner as offered to buvers of market -rate units. 3. For ownership housing (condominiums, townhomes/twin homes, duplexes, triplexes, rowhouses, and four-plexes), at least 10% of units shall be affordable to households at or below 110% of AMI, including any related and required association or management fees. B. Naturally Occurring Affordable Housing_(NOAH) Replacement Requirement. If a development demolishes or converts NOAH units, the new development must Page 4 of 9 ATTACHMENT A Public hearing draft ordinance April27, 2026 replace those units at a minimum rate of 20% of total units affordable at 60% AML Replacement units shall be comparable in bedroom count and total bedroom square footage to the demolished units. C. Integration and Design Standards 1. Distribution and Integration. Affordable units: a. Shall be distributed throughout the development and not concentrated in any single building, floor, or section. b. Shall be proportionately distributed across all unit types(studio, 1- bedroom, 2-bedroom, 3-bedroom, etc.). c. Shall be indistinguishable from market -rate units in terms of exterior appearance and quality of construction. d. May be either "fixed" or "floating." Fixed units are those identified by unit number and never change. Floating units may change over time as long as the total number of units and any specific quantity of bedroom sizes or total square footage in the property remains compliant with the original Development Agreement. 2. Comparable Quality. Affordable units shall: a. Have the same design, materials, and construction quality as market -rate units. b. Have comparable square footage and room sizes to market -rate units of the same bedroom count. c. Have comparable furniture. fixtures and eauipment to market -rate units. d. Have access to the same amenities, facilities, and services as market -rate units. e. Have nronortional access to narking. including both surface and enclosed arking if available. 3. Family -sized Units. Developments of 60 or more units shall include a minimum number of 3-bedroom or larger units. The followingtable able establishes minimum requirements: Total Development Units Minimum 3+ Bedroom Units 60-99 3 100-150 5 150+ 5% of total Age -restricted developments (55+) shall include at least one 3-bedroom or larger unit per floor, for floors of the structures)/building(s) that are at least 40 percent leasable residential space. Subd. 7 Affordability Controls Page 5 of 9 ATTACHMENT A Public hearing draft ordinance April27, 2026 A. Rent Limits. Maximum rent for affordable units, including utilities, parkin and nd all mandatory fees, shall not exceed 30% of the applicable AMI level adjusted for household size and bedroom count. Rent limits shall be based on Metro HRA Small Area Fair Market Rents or Minnesota Housing income limits, whichever is more restrictive. B. Rental affordable dwelling units shall be rented only to income eligible families during the period of affordability. A household that was income eligible at initial occupancy may remain in the affordable dwelling unit for additional rental periods as long as the income of the household does not exceed one -hundred fogy percent (140%) of the applicable AMI. C. Period of Affordability. Affordable units shall remain affordable for a minimum of 20 years from the date of initial certificate of occupancy. Affordability shall be secured through a recorded covenant or deed restriction approved by the City Attorney, D. Non -Discrimination. Developers, owners and managers shall not discriminate against prospective tenants on the basis of source of income. Projects subject to this Policy shall accept tenant -based rental housing assistance including but not limited to Section 8 Housing Choice Vouchers, HOME tenant -based assistance and Housing Support. Tenants with rental assistance may occupy an affordable dwelling unit with the rent charged not exceeding the maximum allowed by Metro HRA or the assistance provider. Subd. 8 Regulatory Incentives. To offset the costs of providing affordable housing without public subsidy, developments meetingthe he requirements of this ordinance, are eligible for the following re ug latory incentives: A. Density Bonus. Developments providing affordable units at or below 80% AMI may receive a density bonus of up to 25% above the maximum density otherwise permitted, provided the increase does not negatively impact surrounding, properties or conflict with comprehensive plan goals. Developments providing affordable units at or below 60% AMI may receive a density bonus of up to 50% above the maximum density otherwise permitted, provided the increase does not negatively impact surrounding properties or conflict with comprehensive plan goals. The density bonus shall not increase the number of required affordable units. B. Lot Size and Width Reduction. Minimum lot size and lot width requirements may be reduced by up to 25% for developments meeting affordability requirements, subject to site plan approval and findings that public health, safety, and welfare are protected. C. Lot Coverage Increase. Maximum lot coverage may be increased by up to 10% for developments meeting affordability requirements, subject to adequate stormwater management and site plan approval design review. D. Expedited Review. Applications for developments providing affordable units shall receive priority review by city staff and may be placed ahead of other applications in the review queue. Page 6 of 9 ATTACHMENT A Public hearing draft ordinance April27, 2026 E. Parking Flexibility. The City may consider parking reductions of up to 25% for developments meeting affordability requirements, provided adequate parking is demonstrated through a parking study and subject to conditions ensuring affordable unit residents have equitable access to parking at no additional charge. Subd. 9 Affordable Housing Plan A. Required Submission. All developments subject to this ordinance shall submit an Affordable Housing Plan as part of the final development plan application. The plan shall be approved by the City Council prior to issuance of building permits. B. Plan Contents. The Affordable Housing Plan shall include: 1. Total number of units and number of affordable units by AMI level. 2. Unit mix showing bedroom counts or total square footage of leasable space for both market -rate and affordable unit types. 3. Site plan and floor plan showing location and distribution of affordable units. 4. Proposed rent levels for affordable units demonstrating compliance with affordability limits. 5. Management plan describing marketing, tenant selection, income verification, and annual reporting procedures. 6. Phasing plan showing, proportional development of affordable and market -rate units (if applicable). 7. Draft affordability covenant or deed restriction in form approved by the City Attorney. Subd. 10 Development Agreement A. Reauired Agreement. Prior to issuance of building hermits. the developer shall execute a Development Agreement with the City. The agreement shall incorporate the approved Affordable Housing Plan and set forth all commitments and obligations of both parties. B. Recorded Covenant. The developer shall execute and record with the County a covenant or deed restriction, in form approved by the City Attorney, that runs with the land and ensures continued affordability of designated units for the required period. The covenant shall be recorded prior to issuance of certificates of occupancy_ C. Right of First Refusal. The agreement may include a right of first refusal providing the City or designated affordable housing organization with the option to purchase the property before it is offered on the open market, to preserve long-term affordability_ Subd. 11 Monitoring and Compliance A. Annual Reporting. Property owners shall submit an annual report to the City Administrator or designee by February 1 of each year, containing_ 1. Total number of units and number of affordable units by AMI level. 2. List of all affordable units or sum total/percentage of leased square footage of affordable units. 3. Current rent for each affordable unit. Page 7 of 9 ATTACHMENT A Public hearing draft ordinance April27, 2026 4. Income verification documentation for new tenants. 5. Vacancy information. 6. Certification of compliance with all requirements of this ordinance and the Development Agreement. B. Monitoring and Inspection. The City reserves the right to inspect records and properties to verify compliance with affordability requirements. Inspections shall be conducted upon reasonable notice and during normal business hours. C. Phasing Compliance. For phased developments, certificates of occupancy for market - rate units shall not be issued until a proportionate number of affordable units in that phase have received certificates of occupancy and are available for occupancy. Subd. 12 Alternative Compliance. The City Council mayqpprove alternative methods of compliance that provide equal or greater public benefit than strict application of this ordinance. Any alternative proposal shall: A. Provide at least as manv affordable units at the same or lower income levels. B. Maintain or exceed the quality and design standards required by this ordinance. C. Demonstrate compelling circumstances justifying the alternative approach. D. Be recommended for approval by city staff with detailed findings supporting the public benefit. Subd.13 Enforcement A. Violations. Failure to comply with the requirements of this ordinance or the Development Agreement constitutes a violation subject to enforcement action. Violations may result in withholding of certificates of occupancy, revocation of permits, civil penalties, or other remedies available under law. B. Remedies. The city may pursue any remedy available under law or equity to enforce this ordinance. Remedies are cumulative and not exclusive. Subd.14 Administration A. Guidelines and Procedures. The City Administrator may adopt administrative guidelines and procedures to implement this ordinance, subject to approval by the City Council. Guidelines shall be published and made available to developers and the public. B. Annual Evaluation. The City Administrator or designee shall provide an annual report to the City Council by October 1 of each year evaluatingthe he implementation and effectiveness of this ordinance, including the number of affordable units created, compliance rates, and recommendations for amendments. Page 8 of 9 ATTACHMENT A Public hearing draft ordinance April27, 2026 C. Periodic Review. The City Council shall review this ordinance at least every five years to ensure it remains responsive to local housing needs, market conditions, and regional housing goals. Amendments may be adopted following public hearing as required by state law. SECTION 2. If any section, subsection, paragraph, sentence, or clause of this ordinance is held to be unconstitutional or invalid, the remaining portions shall remain valid and in force. The City Council declares that it would have passed each provision independently. SECTION 3. This Ordinance shall become effective immediately upon its passage and publication according to law. A Summary of this Ordinance will be published in accordance with state statute. PASSED and ADOPTED this of the City of Arden Hills, Minnesota. ATTEST: Julie Hanson, City Clerk day of , 2026, by the City Council CITY OF ARDEN HILLS David Grant, Mayor Page 9 of 9 Attachment B AGE - -z3�HILLS MEMORANDUM DATE: April 8, 2026 TO: Planning Commission Chair and Commissioners FROM: Jake Reilly, Community Development Director SUBJECT: Planning Case #26-006 — Public Hearing Required Applicant: City of Arden Hills Request: Ordinance Amendments to Zoning Code Section 1320.16 — Requirements for Affordable Housing (Draft inclusionary housing ordinance) Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Commission Should Consider The City of Arden Hills is proposing amendments to City Zoning Code Chapter 13 within Section 1320, adding a new Section 1320.16 — Requirements for Affordable Housing. The Planning Commission should review and consider a draft inclusionary housing ordinance designed to address affordability in new residential construction. During the discussion the Commission should also consider any public hearing testimony related to the ordinance. Backiround In the fall of 2025, the City Council requested staff begin developing an affordable housing policy for new residential developments in the City of Arden Hills. Staff prepared several presentations about the history of and existing market conditions related to construction, cost, and affordability of new housing in the nation, state of Minnesota, the Twin Cities metropolitan region, Ramsey County and Arden Hills. At the October 2025 work sessions, the City Council received information about affordable housing in Arden Hills and the relation to the housing market nationwide. Two memos, summarized below, were produced detailing the root causes of the nationwide housing crisis, the effect specific to Arden Hills and potential solutions. Arden Hills faces a significant housing affordability challenge across all income levels and age groups. About 21% of all households are cost -burdened (spending more than 30% of income on housing), rising to 52% among renters. This includes more than a quarter of households making between 60% of the Area Median Income (AMI) and 80% AMI. In real dollars that is a four - Page 1 of 10 person household with an annual income between $79,440 and $104,200. The median home sale price is $465,000 with only a three-month supply on the market — well below the five -to -six months considered healthy. Average rents exceed $1,800/month. Affordability pressures extend beyond lower -income residents: over a third of older households (65+) are now cost -burdened nationally, and many Arden Hills seniors face a "lifecycle housing mismatch" with few options between large single-family homes and expensive senior care facilities. The crisis is both national and local. Home prices have risen 60% nationwide since 2019, and the U.S. homeownership rate fell in 2024 for the first time in eight years most sharply among households under 35. Two structural forces drive the shortage: decades of underbuilding "missing middle" housing (small-scale homes and small multi -family buildings), and incomes that have not kept pace with construction costs. New tariffs are expected to add roughly $10,900 per new home, and economic uncertainty is suppressing both builder confidence and buyer demand. Locally, Arden Hills is largely built out, institutional land holdings limit developable areas, and limited public transit adds to residents' true cost of living. The following definitions have been used to frame the conversations: Affordable housing means any home, whether rented or owned, costing 30% or less of a household's income. Attainable housing refers to homes/condominiums purchasable by households earning 100-125% of Area Median Income (AMI). Workforce housing serves households at 60-80% AMI. Subsidized and deeply affordable housing targets households at or below 60% and 30% of AMI respectively, often through government programs. Naturally Occurring Affordable Housing (NOAH) describes older, unsubsidized homes that are affordable due to age or condition. Missing middle housing describes duplexes, triplexes, and small apartment buildings compatible with single-family neighborhoods. This type of residential housing has been severely underbuilt since the 1980s. Arden Hills' home values and rents are higher than surrounding communities, driven in part by institutional land holdings which limit net tax capacity, limited transit options, demand for homes within the Mounds View School District, and constrained supply. One offsetting factor: Arden Hills homeowners pay less in property taxes than owners of similarly valued homes in neighboring cities. The —1,960 planned units at Rice Creek Commons will help address supply, though the timeline is uncertain. Other first and second ring suburban cities offer proven models: Shoreview, Little Canada, New Brighton, Woodbury, and St. Louis Park have each added hundreds of affordable units through inclusionary policies and density bonuses. Edina's inclusionary housing policy has generated nearly $9 million for affordable housing and Richfield and Bloomington have had similar successes. Further, Minneapolis and St. Paul eliminated single -family -only zoning districts with measurable results that have been demonstrated to be an outlier among similarly sized metropolitan areas. Fortunately, there are many low- to no -cost opportunities and solutions that can be tailored to meet Arden Hills' unique needs: Zoning reforms: Allow more units per lot by right, eliminate minimum parking requirements, reduce minimum lot sizes, allow the construction of accessory dwelling units, and adopt a more flexible building code all largely cost -neutral and likely to increase the city's tax base. Inclusionary housing policy: Require affordable units in new developments of 20+ units or collect in -lieu fees for a housing trust fund. Density bonuses: Offer developers additional units in exchange for affordable housing, green space, or sustainable design. Page 2 of 10 • Employer and institutional partnerships: Work with large local employers to support workforce housing development. • NOAH preservation and land trusts: Partner with existing property owners to maintain affordability in older buildings and explore community land trusts to keep homes permanently affordable across successive owners. • Use of/creation of EDA/HRA levy and Local Housing Trust Fund: Enable down - payment assistance, low-cost rehabilitation loans, and a dedicated funding pool eligible for state matching dollars. Arden Hills has a long history of being very effective and efficient with taxpayer dollars, represented in the lower impact of municipality -specific property taxes when compared with surrounding municipalities and municipalities of the same size. Recognizing the importance of this factor on residents and taxpayers, staff offered clarification about the impact of affordable housing on property taxes. Specifically, that affordable homes do not generate fewer property taxes than market -rate homes — valuations are based on construction quality, not resident income. Most affordability tools are cost -neutral or tax -base -positive. Some mechanisms like Tax Increment Financing and Tax Abatement may temporarily defer general fund revenue but do not reduce the city's overall net tax capacity. Grant funding from the Metropolitan Council, Minnesota Housing, Ramsey County and other partners is also available to offset costs. At the December 8, 2025, and January 12, 2026, work sessions, the City Council received additional information about local housing market dynamics and discussed various approaches to increasing the supply of affordable places to live in Arden Hills. That information focused on three market -driven, largely no -cost approaches to increasing Arden Hills' housing supply, set in the context of the affordable housing need the Metropolitan Council estimates Arden Hills must accommodate by 2050. The Metropolitan Council estimates Arden Hills needs to accommodate 221 households at or below 60% of Area Median Income by 2040, with Rice Creek Commons (-1,900 units) designated as the primary location. However, a 2022 Ramsey County study suggests that estimate understates the true need — Ramsey County is the most cost -burdened county in the seven -county metro area. Importantly, there is no legal mandate requiring cities to hit specific affordability targets; all figures are projections. Housing supply ultimately comes when land costs plus construction costs make development financially viable for builders. Three primary tools were discussed in December, along with a reminder that staff are continuing to respond to this discussion with an incremental approach to housing needs in Arden Hills that began with updates to the zoning code and includes this conversation specific to affordable housing, the future conversation expected this spring about Accessory Dwelling Units, and conversations that are ongoing related to the overall citywide Strategic Plan, adopted in November 2025. Eliminate and/or refine parking minimums: Government -mandated minimum parking requirements drive up development costs, reduce density, and force developers to overbuild parking that often sits empty. Eliminating minimums allows developers to right -size parking based on actual market demand — reducing per -unit costs and unlocking land for more homes. This applies to residential, retail, and office uses alike and is considered one of the highest -impact, lowest -cost zoning reforms available. There have also been related conversations about evaluating overnight parking regulations. Page 3 of 10 Increase densities where appropriate: Construction costs are highly sensitive to building type. There is a financially optimal "sweet spot" — duplexes through small apartment buildings of up to roughly six stories — where wood -frame construction keeps costs low. Above six stories, steel - frame construction, dual stairwells, and elevators add significant expense. Allowing more units per lot by right (including accessory dwelling units, subdividing large lots, and reducing minimum lot sizes) spreads land costs across more households without requiring costly construction upgrades. In -process draft zoning code revisions consider increasing minimum densities in appropriate portions of the city. Increasing maximum densities in other portions of the city are more likely than not to have similar effects. An additional effect of this approach may be to encourage the Metropolitan Council to consider additional transit service to and from Arden Hills, including regular route transit. Adopt density bonuses: Embedded in the zoning code, density bonuses allow developers to build more units than permitted in exchange for public benefits such as affordable units, additional green space, or sustainable design. Examples from Cottage Grove, Woodbury, Forest Lake, and Golden Valley illustrate how this can be structured at minimal cost to the city. Adopt inclusionary housing ordinance: These ordinances require or encourage developers to set aside a fraction of newly constructed housing units to be affordable to lower -income households and is an affordable housing tool used by hundreds of jurisdictions nationwide and dozens in the region to address historic inequities as they support residential growth and development. Typically, a city or county will adopt an inclusionary zoning ordinance to both add more affordable homes to its inventory and ensure that lower -income households can live in neighborhoods that have been well-resourced and invested in by the public and private sectors where they would otherwise be priced out, and in neighborhoods where housing supply is increasing. Inclusionary zoning policies may also minimize adverse effects of gentrification such as displacement of families with low incomes. This memo addresses this approach. At the January 12, 2026, City Council work session, staff were directed to bring back a draft ordinance or policy to address requiring affordable units in project proposals. The attached draft "Attachment C" was presented to the Council at its February 9, 2026, work session. The draft ordinance was developed for discussion purposes and is tailored to Arden Hills' market conditions and addresses concerns raised in previous discussions, including design standards, municipal subsidy, enforceability, and maintenance -related affordability for existing residents. It covers both new residential construction and rehabilitation of existing multi -family homes and is intended to be market -sensitive, avoid negative impacts to the tax base, and address stated concerns about community character. Further, based on January's Council direction, staff confirmed two zoning code updates will be pursued as part of the broader code revision: 1. Reducing required parking: Addressing existing parking minimums remains a top priority, freeing up land and reducing development costs for housing and businesses alike. 2. Selectively increasing maximum densities: Targeted density increases in specific zoning districts — particularly R-4 Multiple Dwelling, B-2 General Business, and High Density/Mixed Use future land use areas — are expected to make mixed -income development financially viable without requiring city subsidy. This aligns with the 2040 Comprehensive Plan goals around lifecycle housing and aging in community. 3. Selectively increasing minimum densities/reducing minimum lot sizes: Targeted minimum density increases and/or reducing minimum lot sizes in appropriate portions of the city's single-family residential neighborhoods, perhaps through adopting an Accessory Dwelling Unit provision to the zoning code, and/or by allowing for smaller scale homes on Page 4 of 10 larger lots may be appropriate. Both of these are proven ways to reduce cost -burden related to property taxes and encourage construction of more diverse types of homes. Two additional tools are also contemplated for implementation in the future: 1. Creation of an affordable housing fund: A Minnesota statutory tool that allows the city to set aside funds specifically for creating or preserving housing across all types and scales — rental, ownership, new construction, and rehabilitation. Notably, no tax levy is required. 2. Collaborate with Ramsey County: Ramsey County's newly created Housing and Redevelopment Authority adds further flexibility to County -supported housing opportunities. County programs can also support business development, help seniors age in place and community, and attract new families to Arden Hills. The draft ordinance being considered for public hearing is included as Attachment A. The attached public hearing draft was crafted in response to the conversation at the Council meeting and features significant refinements to address implementation concerns and offer more options to both policymakers and homebuilders to achieve the stated goal of increasing the number of homes in Arden Hills that are affordable to those who wish to live here. Table 1: Difference in required units Options Income Maximum Minimum % of Units Standard household income Commission Council (Att. A) (Att. B) 1 Very Low 50% AMI - 5% Income 2 Low Income 60% AMI 5% 7.5% 3 Workforce 80% AMI 10% 10% Housing One discussion point the Commission should consider is if there is interest in increasing the minimum percentage of units affordable to those at 80% AMI (which is similar to the lower cost end of the existing rental rates the market commands today) to 15%. City Council members requested the Commissioners consider this question and stated a desire for "middle of the road" approach. Below is information about other cities in the region and their approaches to affordable housing in order for the Commission to evaluate what "middle of the road" might mean. Many cities in the region have adopted inclusionary housing policies or ordinances, sometimes referred to as inclusionary zoning ordinances. Staff considered all known adopted inclusionary housing policies when crafting the draft ordinance. Special attention was paid to those policies or ordinances that have been adopted by nearby communities, including Shoreview, Bloomington, Eden Prairie, Edina, Forest Lake, Hopkins, Richfield, and St. Louis Park. Other municipal approaches to affordability considered include incentives within an existing PUD process, such as those used by Woodbury and Chanhassen. Shoreview's more recent multi -family developments, The Emrik SV, Loden SV and Aloma Apartments, were produced before the city's Affordable Housing Ordinance was adopted and received subsidy to do so. Page 5 of 10 Table 2: Inclusionary zoning requirements in suburban communities Minimum % of Units (Rental) Income Eden Golden St. Louis Shoreview Bloomington Edina Hopkins Minnetonka Standard limit Prairie Valley park Ext. Low 30% AMI - 5% - - - - 5% Income or or Very Low 50% AMI 5% 10% 10% 10% 5% 5%1 10% 9% Income or or or or or or Low 60% AMI 7.5% 15% 20% 15% 10% 10%2 20% Income or Workforce 80% AMI 10% - - - - - - - Housing As established, housing is considered affordable when the cost is not more than 30 percent of the resident's income, including taxes, utilities, and related fees. In today's rental market, separating out fees from rent has been a mechanism for property owners to both right size the cost of living to the tenant and recoup as much of the cost of the development and maintenance of the property/amenities as possible, including addressing future needs. In some cases, renter/homeowner insurance is included in that bundle of costs. Many multi -family management firms now require renters to obtain rental insurance. There are key factors in ensuring people of all kinds can live in a place, two of which are supply and perception. On the supply side, when there is a sufficient supply of homes available to renters or owners of any kind, scarcity does not have the effect of driving up the cost of a place to live. However, it is important to note that supply does not inherently impact demand. Both how "easy" a developer perceives a locality is to develop in and neighborhood perception influence whether a developer of any kind will find a place desirable to build in. Ultimately, supply of housing will come when the cost of land plus the cost of construction is of interest to a developer. Higher density buildings are more likely to be profitable in locations that are best able to support them. The Lexington Avenue corridor is one example of a place where developers may desire to build higher density buildings. In that area, the cost of land is somewhat lower than in the existing single-family residential neighborhoods and the location affords more opportunities to walk to and from major employers and many services and businesses. Some of this supply (relative to the cost of land) can be addressed through the pending zoning code update. Discussion Inclusionary housing ordinance Attachment A is the public hearing version of the draft inclusionary housing ordinance that has revisions from the conversation at the February 2026 Council work session. Substantive changes from the Council's discussion include changes to percentages of required affordable units as shown in Table 1 above, as well as additional language not seen by the City Council designed to clarify the approach and identify additional opportunities to meet the intent of the ordinance, as follows: 1 If no subsidy or if no zoning or comprehensive plan amendment requested z If no subsidy and with zoning or comprehensive plan amendment requested Page 6 of 10 Based on Council review and discussion: • Reducing the number of affordability options from three to two • Eliminating an option to provide affordable housing for those at or below 50% AMI • Reducing the percentage of units affordable for those at or below 60% AMI from 7.5% to 5%, • Clarifying that developers may choose one or more affordability options • Adding definitions for affordable rent, density bonus unit, and tenant paid rent. • Clarifying that the replacement requirement related to Naturally Occurring Affordable Housing does not require the same percentages as new construction. • Clarifying and refining the distribution and integration section of the draft ordinance for legibility • Removing erroneous language/typographical errors. Language added by staff to enhance clarity and enforceability, offer additional choices to meet the stated goals, and address concerns associated with unclear language leading to uncertainty for developers, residents, and policymakers alike: • Adding projects developed on property purchased from the City of Arden Hills to the list of qualified projects. • Adding a payment -in -lieu option for developers wishing to produce market -rate -only projects, known as a "Total Buy In" fee, an option that has the potential benefit of offering the city the opportunity to direct non -tax -levy funds to the production of affordable homes, • Clarifying and identifying regulations for how parking shall be provided. • Clarifying and identifying what fees or services comprise the sum total of an affordable payment. • Adding a second option for a density bonus for units affordable to those at 60% of AMI (this rental rate targets those who are teachers, firefighters and other essential workers). Staff seek feedback on Attachment A for a recommended approach from the Planning Commission to the City Council, following the public hearing. Additional work in progress: Addressing affordable housing and housing supply needs generally is naturally complex. Complex issues often require incremental, coordinated, and complementary approaches to resolve. City staff has been directed by Council to take an incremental approach, therefore this ordinance discussion should be considered in the context of other work ongoing to address the need for more places for people to live in Arden Hills, and for there to be a greater range of housing choices available within the city limits. There is also a known need to address the needs of residents who are aging in place and homes that may need repairs that are beyond the means of the owner's economic situation today. Staff is continuing to work on those issues alongside issues associated with new construction, including new commercial construction. Some of the initiatives underway that are complementary to this proposed ordinance include: Pending zoning code reforms Direction from the council on January 12 was also clear that the list of zoning code reforms to establish standards, reduce regulatory barriers and become more in line with provide and accepted professional practices around minimum standards for parking, lot size, and housing types. As staff evaluates the drafted updates to the zoning code, based on the conversations with Council about affordable housing, we intend to address the following items discussed with council in those Page 7 of 10 updates. These include evaluating potential reductions in minimum parking standards, increasing maximum allowed densities in select portions of the city, and the consideration of allowing accessory dwelling units to be constructed in Arden Hills. Staff keep the following adopted 2040 Comprehensive Plan policies in mind when crafting draft ordinance language: • Encourage the incorporation of affordable and life -cycle housing into new development and redevelopment where feasible. • Identify programs, policies, and strategies that encourage aging in community for senior citizens. Based on the current market and the location of available sites for housing in Arden Hills, changing the overall density allowed in specific zoning districts such as R-4 Multiple Dwelling and B-2 General Business or in the High Density Housing and Mixed Use future land uses is more likely than not to yield success in the private market without requiring subsidy from the city. Staff anticipate bringing forward portions of the draft revised zoning code to the Planning Commission in Q2 of this year. Other work in process that will come to both the City Council and the Planning Commission in the next several months include: Accessory dwelling units The Council is expected to receive information and discuss prospective approaches to including provisions to allow Accessory Dwelling Units (ADUs) to be constructed on properties within the city limits. At this time the zoning code, nor the draft revisions to the zoning code include consideration of Accessory Dwelling Units. A report was initially provided by staff in anticipation of a discussion at the March work session and is available. A slightly revised version of that report is expected to be considered at the April 13, 2026, work session and will be available in the packet for that City Council work session. Draft language to consider allowing ADUs to be constructed in Arden Hills will come to the Planning Commission, likely in April. Staff anticipates bringing an information presentation to the Planning Commission about ADUs for the May 6, 2026, meeting. Housing needs study Staff received support to apply for a grant through the Metropolitan Council's Livable Communities Act grant program to evaluate gaps in housing supply and identify defined needs, which will also help identify additional market -based approaches to housing development in Arden Hills. That grant application is due April 15, 2026, and will be considered by the City Council at the April 13, 2026, regular Council meeting. Economic Development Commission The Economic Development Commission (EDC) has crafted a draft workplan that addresses items within the City's adopted Strategic Plan that consider the business environment, including how to ensure Arden Hills has a defined identity, that businesses feel both engaged with and supported by the elected officials and city staff, and evaluating opportunities for development, redevelopment, and community enhancements that are more likely that not to improve the City's net tax capacity and capitalize on vacant and/or underutilized land to ensure the long-term financial health of the city. The Planning Commission will also have opportunities to weigh in and engage on those issues as we work through the very first strategic plan adopted by the Arden Hills City Council. Page 8 of 10 Notice A Zoning Code Amendment requires a public hearing. Notice was published in the Pioneer Press on March 26, 2026. The city has not yet received any public comments regarding this case. Findings of Fact The Planning Commission must make a finding as to whether or not the proposed application would adversely affect the surrounding neighborhood or the community as a whole based on the aforementioned factors. Staff offers the following findings for consideration: General Findings: • The City of Arden Hills is proposing to amend ordinance language for Chapter 13 — Zoning Code by adding Section 1320.16. • The proposed ordinance is consistent with the adopted Comprehensive Plan policies to: o Encourage the incorporation of affordable and life -cycle housing into new development and redevelopment where feasible. o Identify programs, policies, and strategies that encourage aging in community for senior citizens. • The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income (AMI). • Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. • There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. • New residential development can accommodate existing demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. • The preservation of naturally occurring affordable housing (NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. • Economic integration of affordable housing within market -rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. • Amendments to the Zoning Code regulations require a public hearing prior to action by the City Council. Options and motion language Recommend Approval: Move to recommend approval of Planning Case 26-006 as presented (or as modified by Planning Commission) for Zoning Code Amendments Ordinance 2026-OXX to Chapter 13 in Section 1320.16 — Inclusionary Housing of the Arden Hills City Code to add language to address an identified need for affordable housing production within the City as discussed in the April 8, 2026 Report to the Planning Commission. • Recommend Denial: Move to recommend denial of Planning Case 26-006 as presented (or as modified by Planning Commission) for Zoning Code Amendments Ordinance 2026-OXX to Chapter 13 in Section 1320.16 — Inclusionary Housing of the Arden Hills City Code to add language to address an identified need for affordable housing Page 9 of 10 production within the city: findings to deny should specifically reference the reasons for denial. Table: Move to table Planning Case 26-006 as presented (or as modified by Planning Commission) for Zoning Code Amendments Ordinance 2026-OXX to Chapter 13 in Section 1320.16 — Inclusionary Housing of the Arden Hills City Code to add language to address an identified need for affordable housing production within the City: the Planning Commission should identify a specific reason and/or information request should be included with a motion to table. Budget Impact N/A Attachments Attachment A: Draft inclusionary housing ordinance for public hearing Attachment B: Revised draft inclusionary housing ordinance based on Council discussion (shown with strikeouts and underlines) Attachment C: February 9, 2026, Council work session draft inclusionary housing ordinance Page 10 of 10 ATTACHMENT A Public hearing draft ordinance April 8, 2026 ,!It -AR�EN HILLS ORDINANCE NO. 2026-OXX CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA AN ORDINANCE AMENDING CHAPTER 13, ZONING CODE, SECTION 1320 OF THE ARDEN HILLS CITY CODE TO INCLUDE A NEW SECTION 1320.16 REQUIREMENTS FOR AFFORDABLE HOUSING THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA, ORDAINS: SECTION 1. Chapter 13 - Zoning Code, Section 1320 is hereby amended by adding a new subsection 1320.16 Requirements for Affordable Housing and the underlined language as follows: 1320.16 Requirements for Affordable Housing. Subd. 1 The City Council of Arden Hills finds and declares the following: A. The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income (AMID B. Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. C. There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. D. New residential development can accommodate existing demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. E. The preservation of naturally occurring affordable housing_(NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. F. Economic integration of affordable housing within market -rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. Subd. 2 Purpose. The purpose of this ordinance is to: ATTACHMENT A Public hearing draft ordinance April 8, 2026 A. Maintain a balanced community that provides housing opportunities for households at all income levels. B. Ensure housing opportunities for employees of businesses located in Arden Hills and the surrounding region. C. Implement affordable housing goals and policies contained in the City's Comprehensive Plan. D. Promote economic integration by including affordable units within market -rate developments. E. Create affordable housing without requiring public subsidies or tax increment financing. Subd. 3 This ordinance is adopted pursuant to: A. Minnesota Statutes 6 462.358. subd. la. which authorizes municipalities to adopt ordinances for the purpose of increasingthe he supply of affordable housing using land use mechanisms. B. Minnesota Statutes § 462.358, subd. 11, which authorizes municipalities to enter into agreements requiring affordable housing with established pricing and long- term affordability controls; and C. Minnesota Statutes � 473.859, which requires municipal comprehensive plans to promote creation of affordable housing for low- and moderate -income individuals and families. Subd. 4 Definitions. The following terms shall have the meanings indicated: AFFORDABLE. Housing is affordable when a household pays no more than 30% of gross household income for housing costs, including rent or mortgage payment, utilities fees. and charges. AFFORDABLE RENTS. The rent and utilities for the affordable housing units will be based on payment standards by Zip code using Small Area Fair Market rents, as established by the Metro HRA or, if applicable, the Multifamily Tax Subsidy Projects (MTSP) Income Limits are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits or tax exempt housing bonds authorized under the Internal Revenue Code as adiusted annually. AFFORDABLE HOUSING UNIT. A dwelling unit that has income and rent restrictions pursuant to this ordinance to ensure affordabilitv for eligible households. AREA MEDIAN INCOME (AMI). The median household income as most recently determined by the U.S. Department of Housing and Urban Development HUD, for the Minneapolis -St. Paul -Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area adiusted for household size and number of bedrooms. DENSITY BONUS UNIT. A unit as a result of an increase in density_ permitted above the per acre limit established by the citv code DEVELOPMENT. A new residential or mixed -use development, including construction in phases or stages, for which city approvals are being or have been sought. ATTACHMENT A Public hearing draft ordinance April 8, 2026 DWELLING UNIT. One or more rooms designed for residential use by a single household, containing cooking, living, iving, sanitary, and sleeping facilities. ELIGIBLE HOUSEHOLD. A household with annual income at or below 80% of AMI for rental units, or at or below 110% of AMI for ownership units. MARKET -RATE UNIT. A residential dwelling unit not subject to affordability restrictions under this ordinance. NATURALLY OCCURRING AFFORDABLE HOUSING (NOAH.. Existingrental ental housing that is affordable to households at or below 60% of AMI without public subsidy, typically constructed between 1940 and 1990 and classified as Class B or C real estate 'ro e SUBSTANTIAL REHABILITATION. Improvements to a property where the cost exceeds 20% of the property value (excluding land,) after improvements. TENANT PAID RENT. The monthly rent for an affordable dwelling unit shall include rent, utility costs and any other non -optional monthly occpancy charges. WORKFORCE HOUSING. Housing affordable to households earning between 60% and 80% of AMI, typically needed by teachers, public safety_ personnel, healthcare workers, and other essential workers. Subd.5 Applicability, A. This ordinance applies to the followingdevelopment evelopment types: 1. New multifamilv residential developments creatina 20 or more dwellina units. 2. Mixed -use developments with a residential component of 20 or more dwelling units. 3. Substantial rehabilitation or reconstruction of existing buildings containing 20 or more dwelling units. 4. Conversion of non-residential buildings to residential use creating 20 or more dwelling units. 5. Those developed on property purchased from the City of Arden Hills unless a waiver is recommended by the Arden Hills Planning Commission and approved by the Arden Hills City Council. 6. The development must comply with this Inclusionary Housing Ordinance as amended and approved by the city council as of the date the development enters into a development agreement with the city, B. Calculation of Units/Payment in Lieu For phased developments, the affordable housing requirement shall be calculated based on the total number of units in all phases. Affordable units shall be provided proportionately across phases. When calculating the number of affordable units required, any fraction of 0.5 or ,greater shall be rounded up to the nearest whole number; fractions less than 0.5 shall be rounded down. ATTACHMENT A Public hearing draft ordinance April 8, 2026 It is the strong preference of the city that each new qualifyin dg evelopment provides its proportionate share of affordable housing. However, the city recognizes that it may not be economical or practical in all circumstances to do so. The City Council may waive this requirement, if and when circumstances so dictate, as determined by the city. In lieu of providing affordable housing in each new development, the city may consider a cash payment in lieu of providing affordable housing units, known as a Total Buy In (TBI) fee. The TBI shall be equal to $150,000 per unit rounding up to the next whole unit. The TBI is due in cash or certified funds in full to the City at the time of issuance of the building permit. A building, permit will not be issued unless the TBI is paid in full. Subd. 6 Affordable Housing Requirement A. New Development Requirements 1. Developments subject to this ordinance shall provide affordable housing units according to the following standards: Options Choose one Affordability Standard Maximum household income Minimum % of Units 1 Low income 60% AMI 5% 2 Workforce housing 80% AMI 10% 2. On -site parking shall be provided (either surface or enclosed) for affordable units and shall be included within the affordable sales price and/or affordable rent. At least one enclosed parking stall shall be included in the purchase price of an affordable for -sale unit in the same manner as offered to bu. e market -rate units. 3. For ownership housing (condominiums, townhomes/twin homes, duplexes, triplexes, rowhouses, and four-plexes), at least 10% of units shall be affordable to households at or below 110% of AMI, including any related and required association or management fees. B. Naturally Occurring Affordable Housing (NOAH) Replacement Reauirement. If a development demolishes or converts NOAH units, the new development must replace those units at a minimum rate of 20% of total units affordable at 60% AMI. Replacement units shall be comparable in bedroom size to the demolished units. C. Integration and Design Standards 1. Distribution and Integration. Affordable units: ATTACHMENT A Public hearing draft ordinance April 8, 2026 a. Shall be distributed throughout the development and not concentrated in any single building, floor, or section. b. Shall be proportionately distributed across all unit types (studio, 1- bedroom, 2-bedroom, 3-bedroom, etc.). c. Shall be indistinguishable from market -rate units in terms of exterior appearance and quality of construction. d. Mav be either "fixed" or "floating." Fixed units are those identified b unit number and never change. Floating units may change over time as long as the total number of units and any specific quantity of bedroom sizes or total square footage in the property remains compliant with the original Development Agreement. 2. Comparable Quality. Affordable units shall: a. Have the same design, materials, and construction quality as market -rate units. b. Have comparable square footage and room sizes to market -rate units of the same bedroom count. c. Have comparable furniture, fixtures and equipment to market -rate units. d. Have access to the same amenities, facilities, and services as market -rate units. e. Have proportional access to parking, including both surface and enclosed parking if available. 3. Family -sized Units. Developments of 60 or more units shall include a minimum number of 3-bedroom or larger units. The followingtable able establishes minimum requirements: Total Development Units Minimum 3+ Bedroom Units 60-99 5 100-150 8 150+ 10% of total Age -restricted developments(55+) shall include at least one 3-bedroom or larger unit per floor, for floors of the structure(s)/building(s) that are at least 40 percent leasable residential space. Subd. 7 Affordability Controls A. Rent Limits. Maximum rent for affordable units, including utilities, parkin and nd all mandatory fees, shall not exceed 30% of the applicable AMI level adjusted for household size and bedroom count. Rent limits shall be based on Metro HRA Small Area Fair Market Rents or Minnesota Housing income limits, whichever is more restrictive. B. Income Qualification. Tenants of affordable units must be income -qualified at initial occupancy. Income verification shall follow Metro HRA or Minnesota Housing ATTACHMENT A Public hearing draft ordinance April 8, 2026 guidelines. A household whose income rises above the qualifying level may continue to occupy the unit provided household income does not exceed 140% of the applicable AMI. Upon vacancy, the unit must be re -rented to an income -qualified household. C. Period of Affordability. Affordable units shall remain affordable for a minimum of 20 years from the date of initial certificate of occupancy. Affordability shall be secured through a recorded covenant or deed restriction approved by the City Attorney, D. Non -Discrimination. Developers, owners and managers shall not discriminate against prospective tenants on the basis of source of income. Projects subject to this Policy shall accept tenant -based rental housing assistance including but not limited to Section 8 Housing Choice Vouchers, HOME tenant -based assistance and Housing Support. Tenants with rental assistance may occupy an affordable dwelling unit with the rent charged not exceeding the maximum allowed by Metro HRA or the assistance provider. Subd. 8 Regulatory Incentives. To offset the costs of providing affordable housing without public subsidy, developments meetingthe he requirements of this ordinance, are eligible for the following re ug latoa incentives: A. Density Bonus. Developments providing affordable units at or below 80% AMI may receive a density bonus of up to 25% above the maximum density otherwise permitted, provided the increase does not negatively impact surrounding, properties or conflict with comprehensive plan goals. Developments providing affordable units at or below 60% AMI may receive a density bonus of up to 50% above the maximum density otherwise permitted, provided the increase does not negatively impact surrounding properties or conflict with comprehensive plan .,.goals. The density bonus shall not increase the number of required affordable units. B. Lot Size and Width Reduction. Minimum lot size and lot width requirements may be reduced by up to 25% for developments meeting affordability requirements, subject to site plan approval and findings that public health, safety, and welfare are protected. C. Lot Coverage Increase. Maximum lot coverage may be increased by up to 10% for developments meeting affordability requirements, subject to adequate stormwater management and site plan approval design review. D. Expedited Review. Applications for developments providing affordable units shall receive priority review by city staff and may be placed ahead of other applications in the review queue. E. Parking Flexibility. The City may consider parking reductions of up to 25% for developments meeting affordability requirements, provided adequate parking is demonstrated through a parking study and subject to conditions ensuring affordable unit residents have equitable access to parking at no additional charge. Subd. 9 Affordable Housing Plan ATTACHMENT A Public hearing draft ordinance April 8, 2026 A. Required Submission. All developments subject to this ordinance shall submit an Affordable Housing Plan as part of the final development plan application. The plan shall be approved by the City Council prior to issuance of building permits. B. Plan Contents. The Affordable Housing Plan shall include: 1. Total number of units and number of affordable units by AMI level. 2. Unit mix showing bedroom counts or total square footage of leasable space for both market -rate and affordable unit types. 3. Site plan and floor plan showing location and distribution of affordable units. 4. Proposed rent levels for affordable units demonstrating compliance with affordability limits. 5. Management. plan describing marketing, tenant selection, income verification, and annual reporting procedures. 6. Phasing plan showing proportional development of affordable and market -rate units (if applicable). 7. Draft affordability covenant or deed restriction in form approved by the City Attorney. Subd. 10 Development Agreement A. Reauired Agreement. Prior to issuance of building hermits. the developer shall execute a Development Agreement with the City. The agreement shall incorporate the approved Affordable Housing Plan and set forth all commitments and obligations of both parties. B. Recorded Covenant. The developer shall execute and record with the County a covenant or deed restriction, in form approved by the City Attorney, that runs with the land and ensures continued affordability of designated units for the required period. The covenant shall be recorded prior to issuance of certificates of occupancy_ C. Right of First Refusal. The agreement may include a right of first refusal providing the City or designated affordable housing organization with the option to purchase the property before it is offered on the open market, to preserve long-term affordability. Subd. 11 Monitoring and Compliance A. Annual Reporting. Property owners shall submit an annual report to the City Administrator or designee by February I of each year, containing_ 1. Total number of units and number of affordable units by AMI level. 2. List of all affordable units or sum total/percentage of leased square footage of affordable units. 3. Current rent for each affordable unit. 4. Income verification documentation for new tenants. 5. Vacancy information. 6. Certification of compliance with all requirements of this ordinance and the Development Agreement. ATTACHMENT A Public hearing draft ordinance April 8, 2026 B. Monitoring and Inspection. The City reserves the right to inspect records and properties to verify compliance with affordabili . requirements. Inspections shall be conducted upon reasonable notice and during normal business hours. C. Phasing Compliance. For phased developments, certificates of occupancy for market - rate units shall not be issued until a proportionate number of affordable units in that phase have received certificates of occupancy and are available for occupancy. Subd. 12 Alternative Compliance. The City Council may approve alternative methods of compliance that provide equal or greater public benefit than strict application of this ordinance. Any alternative proposal shall: A. Provide at least as manv affordable units at the same or lower income levels. B. Maintain or exceed the quality and design standards required by this ordinance. C. Demonstrate compelling circumstances justifying ing the alternative approach. D. Be recommended for approval by city staff with detailed findings supporting the public benefit. Subd.13 Enforcement A. Violations. Failure to comply with the requirements of this ordinance or the Development Agreement constitutes a violation subject to enforcement action. Violations may result in withholding of certificates of occupancy, revocation of permits, civil penalties, or other remedies available under law. B. Remedies. The city mgy pursue any remedy available under law or equity to enforce this ordinance. Remedies are cumulative and not exclusive. Subd.14 Administration A. Guidelines and Procedures. The City Administrator may adopt administrative guidelines and procedures to implement this ordinance, subject to approval by the City Council. Guidelines shall be published and made available to developers and the public. B. Annual Evaluation. The City Administrator or designee shall provide an annual report to the City Council by October 1 of each year evaluatingthe he implementation and effectiveness of this ordinance, including the number of affordable units created, compliance rates, and recommendations for amendments. C. Periodic Review. The Citv Council shall review this ordinance at least every five years to ensure it remains responsive to local housing needs, market conditions, and regional housing goals. Amendments may be adopted following, public hearing as required by state law. ATTACHMENT A Public hearing draft ordinance April8, 2026 SECTION 3. If any section, subsection, paragraph, sentence, or clause of this ordinance is held to be unconstitutional or invalid, the remaining portions shall remain valid and in force. The City Council declares that it would have passed each provision independently. SECTION 4. This Ordinance shall become effective immediately upon its passage and publication according to law. A Summary of this Ordinance will be published in accordance with state statute. PASSED and ADOPTED this of the City of Arden Hills, Minnesota. ATTEST: Julie Hanson, City Clerk day of 2026, by the City Council CITY OF ARDEN HILLS David Grant, Mayor ATTACHMENT B Revisions following 21912026 Council work session CITY OF ARDEN HILLS INCLUSIONARY HOUSING ORDINANCE LANGUAGE DRAFT V2 1320.16 Requirements for Affordable Housing. 1. PURPOSE AND FINDINGS 1.1 Findings The City Council of Arden Hills finds and declares the following: a. The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income (AMI). b. Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. c. There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. d. New residential development can accommodate existing demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. e. The preservation of naturally occurring affordable housing (NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. f. Economic integration of affordable housing within market -rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. 1.2 Purpose The purpose of this ordinance is to: a. Maintain a balanced community that provides housing opportunities for households at all income levels. b. Ensure housing opportunities for employees of businesses located in Arden Hills and the surrounding region. c. Implement affordable housing goals and policies contained in the City's Comprehensive Plan. Page 1 of 10 ATTACHMENT B Revisions following 21912026 Council work session d. Promote economic integration by including affordable units within market -rate developments. e. Create affordable housing without requiring public subsidies or tax increment financing. 2. AUTHORITY This ordinance is adopted pursuant to: a. Minnesota Statutes § 462.358, subd. 1a, which authorizes municipalities to adopt ordinances for the purpose of increasing the supply of affordable housing using land use mechanisms. b. Minnesota Statutes § 462.358, subd. 11, which authorizes municipalities to enter into agreements requiring affordable housing with established pricing and long- term affordability controls; and c. Minnesota Statutes § 473.859, which requires municipal comprehensive plans to promote creation of affordable housing for low- and moderate -income individuals and families. 3. DEFINITIONS The following terms shall have the meanings indicated: AFFORDABLE. Housing is affordable when a household pays no more than 30% of gross household income for housing costs, including rent or mortgage payment, utilities, fees, and charges. AFFORDABLE RENTS. The rent and utilities for the affordable housing units will be based on payment standards by Zip code using Small Area Fair Market rents, as established by the Metro HRA or, if applicable, the Multifamily Tax Subsidy Projects (MTSP) Income Limits are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits or tax exempt housing bonds authorized under the Internal Revenue Code as adjusted annually. AFFORDABLE HOUSING UNIT. A dwelling unit that has income and rent restrictions pursuant to this ordinance to ensure affordability for eligible households. AREA MEDIAN INCOME (AMI). The median household income as most recently determined by the U.S. Department of Housing and Urban Development (HUD) for the Minneapolis -St. Paul -Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, adjusted for household size and number of bedrooms. DENSITY BONUS UNIT. A unit as a result of an increase in density permitted above the per acre limit established by the city code DEVELOPMENT. A new residential or mixed -use development, including construction in phases or stages, for which city approvals are being or have been sought. DWELLING UNIT. One or more rooms designed for residential use by a single household, containing cooking, living, sanitary, and sleeping facilities. Page 2 of 10 ATTACHMENT B Revisions following 21912026 Council work session ELIGIBLE HOUSEHOLD. A household with annual income at or below 80% of AMI for rental units, or at or below 110% of AMI for ownership units. MARKET -RATE UNIT. A residential dwelling unit not subject to affordability restrictions under this ordinance. NATURALLY OCCURRING AFFORDABLE HOUSING (NOAH). Existing rental housing that is affordable to households at or below 60% of AMI without public subsidy, typically constructed between 1940 and 1990 and classified as Class B or C real estate property. SUBSTANTIAL REHABILITATION. Improvements to a property where the cost exceeds 20% of the property value (excluding land) after improvements. TENANT PAID RENT. The monthly rent for an affordable dwelling unit shall include rent, utility costs and any other non -optional monthly occupancy charges. WORKFORCE HOUSING. Housing affordable to households earning between 60% and 80% of AMI, typically needed by teachers, public safety personnel, healthcare workers, and other essential workers. 4. APPLICABILITY 4.1 Developments Subject to Requirements This ordinance applies to the following development types: a. New multifamily residential developments creating 20 or more dwelling units. b. Mixed -use developments with a residential component of 20 or more dwelling units. c. Substantial rehabilitation or reconstruction of existing buildings containing 20 or more dwelling units. d. Conversion of non-residential buildings to residential use creating 20 or more dwelling units. The development must comply with this Inclusionary Housing Ordinance as amended and aaaroved by the citv council as of the date the development enters into a development agreement with the city. 4.2 Calculation of Units For phased developments, the affordable housing requirement shall be calculated based on the total number of units in all phases. Affordable units shall be provided proportionately across phases. When calculating the number of affordable units required, any fraction of 0.5 or greater shall be rounded up to the nearest whole number; fractions less than 0.5 shall be rounded down. 5. AFFORDABLE HOUSING REQUIREMENT Page 3 of 10 ATTACHMENT B Revisions following 21912026 Council work session 5.1 Percenta New Development Requirements Developments subject to this ordinance shall provide affordable housing units according to the following standards. Options (Choose one) Affordability Level Standard Maximum household income Minimum % of Units t Very low innnmo 50% AM! 510, 12 Low income 60% AMI 7-. 5% 23 Workforce housing 80% AMI 10% For ownership housing (condominiums, townhomes/twin homes, duplexes, triplexes, rowhouses, and four-plexes), at least 10% of units shall be affordable to households at or below 110% of AMI. 5.2 NOAH Replacement Requirements If a development demolishes or converts NOAH units, the new development must replace those units at a minimum rate of 20% of total units affordable at 60% AMID additicieR to meeting the standard and iRGILASieRary;equire�eRt. Replacement units shall be comparable in bedroom size to the demolished units. 6. INTEGRATION AND DESIGN STANDARDS 6.1 On -Site Location Affordable housing units shall be located within the same development as market -rate units. Off -site construction of affordable units is not permitted under this ordinance. 6.2 Distribution and Integration Affordable units: shall be: a. Shall be distributed throughout the development and not concentrated in any single building, floor, or section. b. Shall be proportionately distributed across all unit types (studio, 1-bedroom, 2- bedroom, 3-bedroom, etc.). c. Shall be indistinguishable from market -rate units in terms of exterior appearance and quality of construction. d. Mav be either "fixed" or "floatina." Fixed units are those identified by unit number and never change. Floating units may change over time as long as the total number of units and anv saecific auantitv of bedroom sizes or total sauare Page 4 of 10 ATTACHMENT B Revisions following 21912026 Council work session footage in the property remains compliant with the original Development Agreement. 6.3 Comparable Quality Affordable units shall: a. Have the same design, materials, and construction quality as market -rate units. b. Have comparable square footage and room sizes to market -rate units of the same bedroom count. c. Have comparable furniture, fixtures and equipment to market -rate units. d. Have access to the same amenities, facilities, and services as market -rate units. e. Have proportional access to parking, including both surface and enclosed parking if available. 6.4 Family -Sized Units Developments of 60 or more units shall include a minimum number of 3-bedroom or larger units. The following table establishes minimum requirements: Total Development Units Minimum 3+ Bedroom Units 60-99 5 100-150 8 150+ 10% of total Age -restricted developments (55+) shall include at least one 3-bedroom or larger unit per floor, for floors of the structure(s)/building(s) that are at least 40 percent leasable residential space. 7. AFFORDABILITY CONTROLS 7.1 Rent Limits Maximum rent for affordable units, including utilities, parking and all mandatory fees, shall not exceed 30% of the applicable AMI level adjusted for household size and bedroom count. Rent limits shall be based on Metro HRA Small Area Fair Market Rents or Minnesota Housing income limits, whichever is more restrictive. 7.2 Income Qualification Tenants of affordable units must be income -qualified at initial occupancy. Income verification shall follow Metro HRA or Minnesota Housing guidelines. A household whose income rises above the qualifying level may continue to occupy the unit provided household income does not exceed 140% of the applicable AMI. Upon vacancy, the unit must be re -rented to an income -qualified household. Page 5 of 10 ATTACHMENT B Revisions following 21912026 Council work session 7.3 Period of Affordability Affordable units shall remain affordable for a minimum of 20 years from the date of initial certificate of occupancy. Affordability shall be secured through a recorded covenant or deed restriction approved by the City Attorney. 7.4 Non -Discrimination Developers, owners and managers shall not discriminate against prospective tenants on the basis of source of income. Projects subject to this Policy shall accept tenant -based rental housing assistance including but not limited to Section 8 Housing Choice Vouchers, HOME tenant -based assistance and Housing Support. Tenants with rental assistance may occupy an affordable dwelling unit with the rent charged not exceeding the maximum allowed by Metro HRA or the assistance provider. 8. REGULATORY INCENTIVES To offset the costs of providing affordable housing without public subsidy, developments meeting the requirements of this ordinance are eligible for the following regulatory incentives: 8.1 Density Bonus Developments providing affordable units at or below 680% AMI may receive a density bonus of up to 25% above the maximum density otherwise permitted, provided the increase does not negatively impact surrounding properties or conflict with comprehensive plan goals. The density bonus shall not increase the number of required affordable units. 8.2 Lot Size and Width Reduction Minimum lot size and lot width requirements may be reduced by up to 25% for developments meeting affordability requirements, subject to site plan approval and findings that public health, safety, and welfare are protected. 8.3 Lot Coverage Increase Maximum lot coverage may be increased by up to 10% for developments meeting affordability requirements, subject to adequate stormwater management and site plan approval design review. 8.4 Expedited Review Applications for developments providing affordable units shall receive priority review by city staff and may be placed ahead of other applications in the review queue. 8.5 Parking Flexibility Page 6 of 10 ATTACHMENT B Revisions following 21912026 Council work session The City may consider parking reductions of up to 25% for developments meeting affordability requirements, provided adequate parking is demonstrated through a parking study and subject to conditions ensuring affordable unit residents have equitable access to parking at no additional charge. 9. AFFORDABLE HOUSING PLAN 9.1 Required Submission All developments subject to this ordinance shall submit an Affordable Housing Plan as part of the final development plan application. The plan shall be approved by the City Council prior to issuance of building permits. 9.2 Plan Contents The Affordable Housing Plan shall include: a. Total number of units and number of affordable units by AMI level. b. Unit mix showing bedroom counts or total square footage of leasable space for both market -rate and affordable unit types. c. Site plan and floor plans showing location and distribution of affordable units. d. Proposed rent levels for affordable units demonstrating compliance with affordability limits. e. Management plan describing marketing, tenant selection, income verification, and annual reporting procedures. f. Phasing plan showing proportional development of affordable and market -rate units (if applicable). g. Draft affordability covenant or deed restriction in form approved by the City Attorney. 10. AFFORDABLE HOUSING DEVELOPMENT AGREEMENT 10.1 Required Agreement Prior to issuance of building permits, the developer shall execute a Development Affordable Housing ❑erfermonno Agreement with the City. The agreement shall incorporate the approved Affordable Housing Plan and set forth all commitments and obligations of both parties. 10.2 Recorded Covenant The developer shall execute and record with the County a covenant or deed restriction, in form approved by the City Attorney, that runs with the land and ensures continued affordability of designated units for the required period. The covenant shall be recorded prior to issuance of certificates of occupancy. 10.3 Right of First Refusal Page 7 of 10 ATTACHMENT B Revisions following 21912026 Council work session The agreement may include a right of first refusal providing the City or designated affordable housing organization with the option to purchase the property before it is offered on the open market, to preserve long-term affordability. 11. MONITORING AND COMPLIANCE 11.1 Annual Reporting Property owners shall submit an annual report to the City Administrator or designee by February 1 of each year, containing: a. List of all affordable units or sum total/percentage of leased square footage of affordable units. b. Current rent for each affordable unit. c. Income verification documentation for new tenants. d. Vacancy information. e. Certification of compliance with all requirements of this ordinance and the Affordable Housing Development Agreement. 11.2 Monitoring and Inspection The City reserves the right to inspect records and properties to verify compliance with affordability requirements. Inspections shall be conducted upon reasonable notice and during normal business hours. 11.3 Phasing Compliance For phased developments, certificates of occupancy for market -rate units shall not be issued until a proportionate number of affordable units in that phase have received certificates of occupancy and are available for occupancy. 12. ALTERNATIVE COMPLIANCE The City Council may approve alternative methods of compliance that provide equal or greater public benefit than strict application of this ordinance. Any alternative proposal shall: a. Provide at least as many affordable units at the same or lower income levels. b. Maintain or exceed the quality and design standards required by this ordinance. c. Demonstrate compelling circumstances justifying the alternative approach. d. Be recommended for approval by city staff with detailed findings supporting the public benefit. 13. ENFORCEMENT 13.1 Violations Page 8 of 10 ATTACHMENT B Revisions following 21912026 Council work session Failure to comply with the requirements of this ordinance or the Affordable HO SiRg Development Agreement constitutes a violation subject to enforcement action. Violations may result in withholding of certificates of occupancy, revocation of permits, civil penalties, or other remedies available under law. 13.2 Remedies The city may pursue any remedy available under law or equity to enforce this ordinance, Remedies are cumulative and not exclusive. 14. ADMINISTRATION 14.1 Guidelines and Procedures The City Administrator may adopt administrative guidelines and procedures to implement this ordinance, subject to approval by the City Council. Guidelines shall be published and made available to developers and the public. 14.2 Annual Evaluation The City Administrator or designee shall provide an annual report to the City Council by October 1 of each year evaluating the implementation and effectiveness of this ordinance, including the number of affordable units created, compliance rates, and recommendations for amendments. 14.3 Periodic Review The City Council shall review this ordinance at least every five years to ensure it remains responsive to local housing needs, market conditions, and regional housing goals. Amendments may be adopted following public hearing as required by state law. 15. SEVERABILITY If any section, subsection, paragraph, sentence, or clause of this ordinance is held to be unconstitutional or invalid, the remaining portions shall remain valid and in force. The City Council declares that it would have passed each provision independently. 16. EFFECTIVE DATE Page 9 of 10 ATTACHMENT B Revisions following 21912026 Council work session This ordinance shall take effect upon publication as required by law. Applications submitted prior to the effective date are not subject to these requirements unless the applicant voluntarily elects to comply to receive available incentives. Page 10 of 10 ATTACHMENT C Draft Ordinance Language February 9, 2026 CITY OF ARDEN HILLS INCLUSIONARY HOUSING ORDINANCE LANGUAGE DRAFT V 1 1. PURPOSE AND FINDINGS 1.1 Findings The City Council of Arden Hills finds and declares the following: a. The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income (AMI). b. Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. c. There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. d. New residential development can accommodate existing demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. e. The preservation of naturally occurring affordable housing (NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. f. Economic integration of affordable housing within market -rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. 1.2 Purpose The purpose of this ordinance is to: a. Maintain a balanced community that provides housing opportunities for households at all income levels; b. Ensure housing opportunities for employees of businesses located in Arden Hills and the surrounding region; c. Implement affordable housing goals and policies contained in the City's Comprehensive Plan; d. Promote economic integration by including affordable units within market -rate developments; e. Create affordable housing without requiring public subsidies or tax increment financing. 2. AUTHORITY Page 1 of 9 ATTACHMENT C Draft Ordinance Language February 9, 2026 This ordinance is adopted pursuant to: a. Minnesota Statutes § 462.358, subd. 1 a, which authorizes municipalities to adopt ordinances for the purpose of increasing the supply of affordable housing using land use mechanisms; b. Minnesota Statutes § 462.358, subd. 11, which authorizes municipalities to enter into agreements requiring affordable housing with established pricing and long- term affordability controls; and c. Minnesota Statutes § 473.859, which requires municipal comprehensive plans to promote creation of affordable housing for low- and moderate -income individuals and families. 3. DEFINITIONS The following terms shall have the meanings indicated: AFFORDABLE. Housing is affordable when a household pays no more than 30% of gross household income for housing costs, including rent or mortgage payment, utilities, fees, and charges. AFFORDABLE HOUSING UNIT. A dwelling unit that has income and rent restrictions pursuant to this ordinance to ensure affordability for eligible households. AREA MEDIAN INCOME (AMI). The median household income as most recently determined by the U.S. Department of Housing and Urban Development (HUD) for the Minneapolis -St. Paul -Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, adjusted for household size and number of bedrooms. DEVELOPMENT. A new residential or mixed -use development, including construction in phases or stages, for which city approvals are being or have been sought. DWELLING UNIT. One or more rooms designed for residential use by a single household, containing cooking, living, sanitary, and sleeping facilities. ELIGIBLE HOUSEHOLD. A household with annual income at or below 80% of AMI for rental units, or at or below 110% of AMI for ownership units. MARKET -RATE UNIT. A residential dwelling unit not subject to affordability restrictions under this ordinance. NATURALLY OCCURRING AFFORDABLE HOUSING (NOAH). Existing rental housing that is affordable to households at or below 60% of AMI without public subsidy, typically constructed between 1940 and 1990 and classified as Class B or C property. SUBSTANTIAL REHABILITATION. Improvements to a property where the cost exceeds 20% of the property value (excluding land) after improvements. WORKFORCE HOUSING. Housing affordable to households earning between 60% and 80% of AMI, typically needed by teachers, public safety personnel, healthcare workers, and other essential workers. Page 2 of 9 ATTACHMENT C Draft Ordinance Language February 9, 2026 4. APPLICABILITY 4.1 Developments Subject to Requirements This ordinance applies to the following development types: a. New multifamily residential developments creating 20 or more dwelling units; b. Mixed -use developments with a residential component of 20 or more dwelling units; c. Substantial rehabilitation or reconstruction of existing buildings containing 20 or more dwelling units; d. Conversion of non-residential buildings to residential use creating 20 or more dwelling units. 4.2 Calculation of Units For phased developments, the affordable housing requirement shall be calculated based on the total number of units in all phases. Affordable units shall be provided proportionately across phases. When calculating the number of affordable units required, any fraction of 0.5 or greater shall be rounded up to the nearest whole number; fractions less than 0.5 shall be rounded down. 5. AFFORDABLE HOUSING REQUIREMENT 5.1 Percentage Requirements Developments subject to this ordinance shall provide affordable housing units according to the following standards: Affordability Level Income Target Minimum % of Units Very Low Income 50% AM 5% Low Income 60% AM 7.5% Workforce Housing 80% AM 10% Developers may choose any one of the three affordability options listed above. For ownership housing (condominiums, townhomes/twin homes, duplexes, triplexes, rowhouses, and four-plexes), at least 10% of units shall be affordable to households at or below 110% of AMI. 5.2 NOAH Replacement Requirements If a development demolishes or converts NOAH units, the new development must replace those units at a minimum rate of 20% of total units affordable at 60% AMI, in Page 3 of 9 ATTACHMENT C addition to meeting the standard inclusionary requirement. comparable in bedroom size to the demolished units. Draft Ordinance Language February 9, 2026 Replacement units shall be 6. INTEGRATION AND DESIGN STANDARDS 6.1 On -Site Location Affordable housing units shall be located within the same development as market -rate units. Off -site construction of affordable units is not permitted under this ordinance. 6.2 Distribution and Integration Affordable units shall be: a. Distributed throughout the development and not concentrated in any single building, floor, or section; b. Proportionately distributed across all unit types (studio, 1-bedroom, 2-bedroom, 3-bedroom, etc.); c. Indistinguishable from market -rate units in terms of exterior appearance and quality of construction. 6.3 Comparable Quality Affordable units shall: a. Have the same design, materials, and construction quality as market -rate units; b. Have comparable square footage and room sizes to market -rate units of the same bedroom count; c. Have comparable furniture, fixtures and equipment to market -rate units; d. Have access to the same amenities, facilities, and services as market -rate units; e. Have proportional access to parking, including both surface and enclosed parking if available. 6.4 Family -Sized Units Developments of 60 or more units shall include a minimum number of 3-bedroom or larger units. The following table establishes minimum requirements: Total Development Units Minimum 3+ Bedroom Units 60-99 5 100-150 8 150+ 10% of total Age -restricted developments (55+) shall include at least one 3-bedroom or larger unit per floor, for floors of the structure(s)/building(s) that are at least 40 percent leasable residential space. Page 4 of 9 ATTACHMENT C Draft Ordinance Language February 9, 2026 7. AFFORDABILITY CONTROLS 7.1 Rent Limits Maximum rent for affordable units, including utilities and all mandatory fees, shall not exceed 30% of the applicable AMI level adjusted for household size and bedroom count. Rent limits shall be based on HUD Fair Market Rents or Minnesota Housing income limits, whichever is more restrictive. 7.2 Income Qualification Tenants of affordable units must be income -qualified at initial occupancy. Income verification shall follow HUD or Minnesota Housing guidelines. A household whose income rises above the qualifying level may continue to occupy the unit provided household income does not exceed 140% of the applicable AMI. Upon vacancy, the unit must be re -rented to an income -qualified household. 7.3 Period of Affordability Affordable units shall remain affordable for a minimum of 20 years from the date of initial certificate of occupancy. Affordability shall be secured through a recorded covenant or deed restriction approved by the City Attorney. 7.4 Non -Discrimination Owners and managers shall not discriminate against prospective tenants on the basis of source of income, including Housing Choice Vouchers or other rental assistance programs. 8. REGULATORY INCENTIVES To offset the costs of providing affordable housing without public subsidy, developments meeting the requirements of this ordinance are eligible for the following regulatory incentives: 8.1 Density Bonus Developments providing affordable units at or below 60% AMI may receive a density bonus of up to 25% above the maximum density otherwise permitted, provided the increase does not negatively impact surrounding properties or conflict with comprehensive plan goals. The density bonus shall not increase the number of required affordable units. 8.2 Lot Size and Width Reduction Page 5 of 9 ATTACHMENT C Draft Ordinance Language February 9, 2026 Minimum lot size and lot width requirements may be reduced by up to 25% for developments meeting affordability requirements, subject to site plan approval and findings that public health, safety, and welfare are protected. 8.3 Lot Coverage Increase Maximum lot coverage may be increased by up to 10% for developments meeting affordability requirements, subject to adequate stormwater management and site design review. 8.4 Expedited Review Applications for developments providing affordable units shall receive priority review by city staff and may be placed ahead of other applications in the review queue. 8.5 Parking Flexibility The City may consider parking reductions of up to 25% for developments meeting affordability requirements, provided adequate parking is demonstrated through a parking study and subject to conditions ensuring affordable unit residents have equitable access to parking at no additional charge. 9. AFFORDABLE HOUSING PLAN 9.1 Required Submission All developments subject to this ordinance shall submit an Affordable Housing Plan as part of the final development plan application. The plan shall be approved by the City Council prior to issuance of building permits. 9.2 Plan Contents The Affordable Housing Plan shall include: a. Total number of units and number of affordable units by AMI level; b. Unit mix showing bedroom counts for both market -rate and affordable units; c. Site plan and floor plans showing location and distribution of affordable units; d. Proposed rent levels for affordable units demonstrating compliance with affordability limits; e. Management plan describing marketing, tenant selection, income verification, and annual reporting procedures; f. Phasing plan showing proportional development of affordable and market -rate units (if applicable); g. Draft affordability covenant or deed restriction in form approved by the City Attorney. 10. AFFORDABLE HOUSING AGREEMENT Page 6 of 9 ATTACHMENT C Draft Ordinance Language February 9, 2026 10.1 Required Agreement Prior to issuance of building permits, the developer shall execute an Affordable Housing Performance Agreement with the City. The agreement shall incorporate the approved Affordable Housing Plan and set forth all commitments and obligations of both parties. 10.2 Recorded Covenant The developer shall execute and record with the County a covenant or deed restriction, in form approved by the City Attorney, that runs with the land and ensures continued affordability of designated units for the required period. The covenant shall be recorded prior to issuance of certificates of occupancy. 10.3 Right of First Refusal The agreement may include a right of first refusal providing the City or designated affordable housing organization with the option to purchase the property before it is offered on the open market, to preserve long-term affordability. 11. MONITORING AND COMPLIANCE 11.1 Annual Reporting Property owners shall submit an annual report to the City Administrator or designee by February 1 of each year, containing: a. List of all affordable units; b. Current rent for each affordable unit; c. Income verification documentation for new tenants; d. Vacancy information; e. Certification of compliance with all requirements of this ordinance and the Affordable Housing Agreement. 11.2 Monitoring and Inspection The City reserves the right to inspect records and properties to verify compliance with affordability requirements. Inspections shall be conducted upon reasonable notice and during normal business hours. 11.3 Phasing Compliance For phased developments, certificates of occupancy for market -rate units shall not be issued until a proportionate number of affordable units in that phase have received certificates of occupancy and are available for occupancy. 12. ALTERNATIVE COMPLIANCE Page 7 of 9 ATTACHMENT C Draft Ordinance Language February 9, 2026 The City Council may approve alternative methods of compliance that provide equal or greater public benefit than strict application of this ordinance. Any alternative proposal must: a. Provide at least as many affordable units at the same or lower income levels; b. Maintain or exceed the quality and design standards required by this ordinance; c. Demonstrate compelling circumstances justifying the alternative approach; d. Be recommended for approval by city staff with detailed findings supporting the public benefit. 13. ENFORCEMENT 13.1 Violations Failure to comply with the requirements of this ordinance or the Affordable Housing Agreement constitutes a violation subject to enforcement action. Violations may result in withholding of certificates of occupancy, revocation of permits, civil penalties, or other remedies available under law. 13.2 Remedies The City may pursue any remedy available under law or equity to enforce this ordinance, including specific performance, injunctive relief, monetary damages, or civil penalties. Remedies are cumulative and not exclusive. 13.3 Affordable Housing Trust Fund Civil penalties and damages collected under this ordinance shall be deposited in the City's Affordable Housing Trust Fund and used exclusively for affordable housing programs and initiatives. 14. ADMINISTRATION 14.1 Guidelines and Procedures The City Administrator may adopt administrative guidelines and procedures to implement this ordinance, subject to approval by the City Council. Guidelines shall be published and made available to developers and the public. 14.2 Annual Evaluation The City Administrator or designee shall provide an annual report to the City Council by October 1 of each year evaluating the implementation and effectiveness of this ordinance, including the number of affordable units created, compliance rates, and recommendations for amendments. 14.3 Periodic Review Page 8 of 9 ATTACHMENT C Draft Ordinance Language February 9, 2026 The City Council shall review this ordinance at least every five years to ensure it remains responsive to local housing needs, market conditions, and regional housing goals. Amendments may be adopted following public hearing as required by state law. 15. SEVERABILITY If any section, subsection, paragraph, sentence, or clause of this ordinance is held to be unconstitutional or invalid, the remaining portions shall remain valid and in force. The City Council declares that it would have passed each provision independently. 16. EFFECTIVE DATE This ordinance shall take effect upon publication as required by law. Applications submitted prior to the effective date are not subject to these requirements unless the applicant voluntarily elects to comply to receive available incentives. Page 9 of 9 Attachment C 'It EN HILLS Approved: CITY OF ARDEN HILLS, MINNESOTA PLANNING COMMISSION WEDNESDAY, APRIL 8, 2026 6:30 P.M. - ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Chair Collins called to order the regular Planning Commission meeting at 6:30 p.m. ROLL CALL Present were: Chair Joshua Collins, Commissioners Jessica Birken, Brad Bjorklund, Patrick Burlingame, Stephen Erler, Nancy Jacobson and Ben Lindau. Absent: None. Also present were: Community Development Director Jacob Reilly, Senior Planner Elena Fransen and Council Liaison Kurt Weber. APPROVAL OF AGENDA — APRIL 8, 2026 Commissioner Erler moved, seconded by Commissioner Birken, to approve the April 8, 2026, agenda as presented. The motion carried unanimously (7-0). APPROVAL OF MINUTES February 4, 2026 — Planning Commission Regular Meeting Chair Collins noted there was a minor change to the minutes on Page 8. Commissioner Erler moved, seconded by Commissioner Bjorklund, to approve the February 4, 2026, Planning Commission Regular Meeting as amended on Pate 8. The motion carried unanimously (7-0). Community Development Director Reilly requested the Commission take a five minute recess to allow staff to address a technology issue. Commissioner Burlingame moved, seconded by Commissioner Bjorklund, to recess the Planning Commission meeting at 6:35 p.m. The motion carried unanimously (7-0). Commissioner Burlingame moved, seconded by Commissioner Bjorklund, to reconvene the Planning Commission meeting at 6:48 p.m. The motion carried unanimously (7-0). ARDEN HILLS PLANNING COMMISSION — April 8, 2026 2 PLANNING CASES A. Planning Case 26-006 — City of Arden Hills — Ordinance Amendments to Chapter 13 - Zoning Code Adding Section 1320.16 Requirements for Affordable Housing — Public Hearing Community Development Director Reilly stated in the fall of 2025, the City Council requested staff begin developing an affordable housing policy for new residential developments in the City of Arden Hills. Staff prepared several presentations about the history of and existing market conditions related to construction, cost, and affordability of new housing in the nation, state of Minnesota, the Twin Cities metropolitan region, Ramsey County and Arden Hills. At the October 2025 work sessions, the City Council received information about affordable housing in Arden Hills and the relation to the housing market nationwide. Two memos, summarized below, were produced detailing the root causes of the nationwide housing crisis, the effect specific to Arden Hills and potential solutions. Community Development Director Reilly reported Arden Hills faces a significant housing affordability challenge across all income levels and age groups. About 21 % of all households are cost -burdened (spending more than 30% of income on housing), rising to 52% among renters. This includes more than a quarter of households making between 60% of the Area Median Income (AMI) and 80% AMI. In real dollars that is a four- person household with an annual income between $79,440 and $104,200. The median home sale price is $465,000 with only a three-month supply on the market — well below the five -to -six months considered healthy. Average rents exceed $1,800/month. Affordability pressures extend beyond lower -income residents: over a third of older households (65+) are now cost -burdened nationally, and many Arden Hills seniors face a "lifecycle housing mismatch" with few options between large single- family homes and expensive senior care facilities. Community Development Director Reilly explained the crisis is both national and local. Home prices have risen 60% nationwide since 2019, and the U.S. homeownership rate fell in 2024 for the first time in eight years — most sharply among households under 35. Two structural forces drive the shortage: decades of underbuilding "missing middle" housing (small-scale homes and small multi -family buildings), and incomes that have not kept pace with construction costs. New tariffs are expected to add roughly $10,900 per new home, and economic uncertainty is suppressing both builder confidence and buyer demand. Locally, Arden Hills is largely built out, institutional land holdings limit developable areas, and limited public transit adds to residents' true cost of living. Community Development Director Reilly reviewed the definitions for Affordable Housing, Attainable Housing, Workforce Housing, Subsidized Housing and Naturally Occurring Affordable Housing, provided further comment on the Inclusionary Housing Ordinance and offered the following Findings of Fact for the Planning Commission: • The City of Arden Hills is proposing to amend ordinance language for Chapter 13 — Zoning Code by adding Section 1320.16. • The proposed ordinance is consistent with the adopted Comprehensive Plan policies to: o Encourage the incorporation of affordable and life -cycle housing into new development and redevelopment where feasible. ARDEN HILLS PLANNING COMMISSION — April 8, 2026 3 o Identify programs, policies, and strategies that encourage aging in community for senior citizens. • The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income (AMI). • Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. • There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. • New residential development can accommodate existing demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. • The preservation of naturally occurring affordable housing (NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. • Economic integration of affordable housing within market -rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. • Amendments to the Zoning Code regulations require a public hearing prior to action by the City Council. Community Development Director Reilly stated staff recommends approval of Planning Case 26-006 as presented (or as modified by Planning Commission) for Zoning Code Amendments Ordinance 2026-OXX to Chapter 13 in Section 1320.16 — Inclusionary Housing of the Arden Hills City Code to add language to address an identified need for affordable housing production within the City as discussed in the April 8, 2026 Report to the Planning Commission. Community Development Director Reilly reviewed the options available to the Planning Commission on this matter: 1. Recommend Approval with Conditions 2. Recommend Approval as Submitted 3. Recommend Denial 4. Table Chair Collins opened the floor to Commissioner comments. Chair Collins requested staff review the questions and answers that were provided by staff prior to this meeting. Community Development Director Reilly reviewed the questions and answers he received prior to the meeting noting he has not received any public comments and indicated this ordinance would not cover Rice Creek Commons. He discussed the City's future land use map noting where new housing developments could occur. He commented on how the ordinance was meant to be a carrot and a stick when it comes to interest, incentives and working with developers in order to develop affordable housing units in the future. Commissioner Bjorklund asked who provided the Twin Cities affordable housing summary. ARDEN HILLS PLANNING COMMISSION — April 8, 2026 4 Commissioner Lindau explained he asked staff to pass this information along to the Planning Commission. Commissioner Bjorklund thanked staff for all of their work on this item. Commissioner Erler questioned if this ordinance could be modified through a PUD like any other ordinance. Community Development Director Reilly stated this would be the case. Commissioner Birken inquired if this ordinance would apply to any multi -family housing project over 20 units. Community Development Director Reilly commented this ordinance would apply to any housing proposal for any type of housing that was 20 units or more. Commissioner Birken asked where in the City this ordinance would apply. Community Development Director Reilly stated the mauve area on the future land use map or the area surrounding Lexington Avenue would apply. Commissioner Bjorklund questioned if housing was allowed on industrial sites. Community Development Director Reilly explained these properties would have to be future land use amendment, a comprehensive land use amendment and a zoning code amendment to allow for residential in an industrial use. Chair Collins asked why staff settled on a project that had 20 housing units as the standard to include affordable housing units. Community Development Director Reilly reported this was the standard for other communities that have an inclusionary housing policy. Chair Collins opened the public hearing at 7:20 p.m. Chair Collins invited anyone for or against the application to come forward and make comment. Kristine Polzer, 1870 Indian Place, stated ADU's were unknown to most people. She requested the City not let the lack of facts deter the City from learning more and giving serious thought to this topic. She asked that the Commission be wise with its recommendation when it comes to ADU's and to be wide in its planning in order to provide options for residents. She urged the City to consider its past when looking towards the future. She believed the City was fortunate to have Mr. Reilly's experience in addressing this topic. She discussed how ADU's are allowing seniors to age in place while creating multi -generational housing. She spoke to how difficult it was for younger generations to get into a house at this time and stated ADU's would be a positive step for the City. Mary Henry, 3521 Ridgewood Court, thanked staff for the detailed staff report. She commented on how difficult it would be for those living in poverty to live in Arden Hills. She believed 60% AMI was more reasonable for affordable housing than 80% AMI. She stated at 60% AMI ARDEN HILLS PLANNING COMMISSION — April 8, 2026 5 housing could be provided for retail workers and assembly line workers. She encouraged the Planning Commission and City Council to have greater vision on who should be served in the affordable housing units in order to make living in Arden Hills achievable for all. Lynn Diaz, 1143 Ingerson Road, stated the City has a significant affordable housing challenge across all income levels and age groups, noting 52% of renters were cost burdened. She reported Ramsey County was the most cost burdened county in the metro area. She supported the City allowing for more units per lot and allowing for ADU's on residential lots. She recommended minimum parking requirements not be eliminated as she did not want to see on street overnight parking. She stated overall she supported the inclusionary housing policy and encouraged the City to consider a land trust and housing trust fund. She discussed how federal funding was available to assist with deeply affordable housing units and encouraged the City to strive for this. She agreed the 80% AMI was useless and recommended the City pursue affordable housing that was at 60% AMI or less. David Rogge, 1366 Arden View Drive, stated mortgage interest rates have a great impact when it comes to affordable housing units. He encouraged the City to have a comprehensive approach when it comes to affordable housing in order to have a meaningful impact on the community. He suggested land trusts be considered and discussed how important it was for there to be State or City-wide action. He recommended the City look for ways to speed up the construction process and to limit fees in order to assist in creating new housing units that were more affordable. There being no additional comment Chair Collins closed the public hearing at 7:40 p.m. Chair Collins stated he would like to suspend Roberts Rules of Order to allow for this item to be discussed in a worksession setting. Chair Collins moved and Commissioner Burlingame seconded a motion to recess the Planning Commission meeting to a worksession meeting at 7:40 p.m. The motion carried unanimously (7-0). Chair Collins moved and Commissioner Burlingame seconded a motion to reconvene the Planning Commission in a worksession format at 7:46 p.m. The motion carried unanimously (7-0). Vice Chair Lindau summarized the information that he provided to the Planning Commission. He discussed how other cities were addressing this topic. He explained if the City wants to address affordability the City has to put in place a legal framework along with a nexus between market rate developments and affordable housing requirements. He requested staff provide the Commission with further information on LAHA dollars. Community Development Director Reilly reported LAHA stands for Local Affordable Housing Aid and was an allocation from the State to a municipality to make up for lack of tax capacity. He explained the LAHA funds will be deposited in the City's coffers and must be used for affordable housing. He stated at the time this program was created, Arden Hills did not qualify because the City did not have over residents. It was his hope the City's population could be reevaluated in order to grant the City access to this program. Chair Collins explained the inclusionary housing policy that was presented to the Planning Commission was similar to the policy that was being followed by Shoreview. ARDEN HILLS PLANNING COMMISSION — April 8, 2026 6 Community Development Director Reilly provided further insight on the proposed inclusionary housing policy noting Edina has one of the most successful ordinance in the State. Commissioner Birken asked why the Council wanted to strike the lowest affordable housing level. Commissioner Erler stated it was his understanding the Council wanted a middle of the road policy. Commissioner Lindau indicated the Council also did not want to price themselves out of the market. He questioned if the Council was aware of the fact Shoreview was allowing for lower AMI housing and these units were not being priced out. Commissioner Jacobson questioned if developers would not embrace the City's proposed chart. Commissioner Birken commented Bloomington was not having any issues and they were at 9% across all categories. She understood that Bloomington was a larger community that had a land trust fund and LAHA dollars available. She asked what options were available to Arden Hills, given the size of this community was so much smaller. Commissioner Bjorklund stated he understood the City could use the EDA to create TIF districts, invest earnings from affordable housing trust funds, sell real property, accept cash donations for affordable housing, and coordinate with the Met Council when it comes to LAHA funding. It was his hope the City's EDA would be more functional going forward. Chair Collins supported the City adopting this inclusionary housing policy in order for the City to be more intentional when it comes to affordable housing. He wanted to see Arden Hills becoming more hospitable when it comes to new development. He questioned if the City had a challenge with its leadership culture or language within City Code. Commissioner Birken explained she was hoping Arden Hills would be open for business and development. She suggested higher density be considered along the Lexington Avenue corridor and that the City reconsider the approval process. She indicated she could support modifying the City's parking requirements as well. She wanted to see the City having an increased housing supply because this would benefit the entire community. Commissioner Burlingame indicated he spoke with a number of realtors in the area. He understood the community was facing a housing crisis. He recognized that the proposed inclusionary housing policy would only apply to larger housing projects. He supported the City looking at what other tools were available to spur affordable housing. He encouraged the City Council to take action in order to have more housing brought into the community rather than unintentionally limiting development. Chair Collins commented on how the thought that more inventory would lead to lower housing prices was no longer the case because demand far outweighs what the market can provide. Commissioner Jacobson stated the perception is that Arden Hills cannot develop, given what has occurred on TCAAP over the past two decades. She understood there was a great need for more housing and agreed this was a very complicated topic. She suggested the affordability ARDEN HILLS PLANNING COMMISSION — April 8, 2026 7 levels be reconsidered within the chart in order to provide more flexibility for future tenants. She liked the idea of having flexible units for affordability with guaranteed rents. Commissioner Burlingame indicated this would require zoning code adjustments when it comes to density and setbacks. Chair Collins stated the City was revising the zoning code at this time and these topics were being considered. Commissioner Erler commented he believed the inclusionary housing policy was the first step. He understood a future step was finding funding. He supported the City getting the first step in place. Chair Collins reviewed the rental rates for 80% AMI. He indicated he would rather see the City pursuing affordable housing that goes deeper and down to 30% AMI. Commissioner Erler stated he could support the City changing the table with the lower AMI rates, noting the financing would have to be figured out in the future. Councilmember Weber requested staff provide the Commission with an overview on Section 8.1 and TIF. Community Development Director Reilly discussed the regulatory incentives that were presented in Section 8.1. He reported he added a second option for a density bonus at 50% given how the PUD functions at Rounds Lake Road and North Heights Church. He stated the 80% language could be revised if he was provided direction from the Planning Commission and City Council. He provided further comment on how the cost for constructing a home has increased since the pandemic. Staff noted it was better for the City to have a policy in place than no policy at all because revisions could be made. Further discussion ensued regarding how Shoreview and Bloomington manage their inclusionary housing policy. The consensus of the Commission was to recommend the chart be amended to more closely reflect the Shoreview numbers with the AMI changed on the chart from 80% to 60%, with the City supporting high level density bonuses. Councilmember Weber commented on the previous housing projects that came to the City Council at Lexington Avenue. He indicated the developer believed they needed significant additional density with a baseline rent at 80% AMI. He stated the developer was asking for increased density just to construct market rate units. Chair Collins understood this to be the case, but noted there were single parents that needed rental rates lower than 80% AMI. Community Development Director Reilly provided the Commission with a summary on TIF Districts and tax increment financing. Commissioner Bjorklund spoke again to the importance of getting the EDA up and running in the City of Arden Hills. ARDEN HILLS PLANNING COMMISSION — April 8, 2026 8 Commissioner Birken stated it would take time for the City to develop a housing trust fund. Commissioner Lindau spoke to the chart that was followed by Shoreview and stated this may be a good starting point for Arden Hills because this community had a similar housing market. Commissioner Erler supported the 30% AMI remaining in the chart noting the City would need additional financial tools in place in order to provide 30% AMI housing units. Commissioner Birken stated the City does not have money for any of these types of projects at this time, but that doesn't mean the City shouldn't be pursuing additional affordable housing units. Councilmember Weber reported there was a lot of tax exempt land in Arden Hills that could be built on in order to bring new housing to the community. Community Development Director Reilly reviewed the cities in the metro area that have a 30% AMI clause within their inclusionary housing policy. Chair Collins appreciated how there was room for creativity for the thresholds and percentages of AMI within future housing projects. Commissioner Burlingame supported the City following the numbers from Shoreview. Commissioner Erler commented the values could be changed over time if the numbers were not working for Arden Hills. He discussed how the percentages and thresholds were a statement of value for the City. Commissioner Lindau recommended the City align its numbers with Shoreview. Commissioner Erler suggested the numbers for the chart be as follows: 80% AMI — 10% of units 60% AMI — 7.5% of units 50% AMI — 5% of units 30% AMI — 5% of units The Commission supported this proposal. Further discussion ensued regarding the density bonuses. Chair Collins suggested the density bonuses remain as is given the research that was conducted by staff. The Commission supported this recommendation. Chair Collins moved and Commissioner Biorklund seconded a motion to recess the worksession meeting and reconvene the Planning Commission meeting at 9:44 p.m. The motion carried unanimously (7-0). ARDEN HILLS PLANNING COMMISSION April 8, 2026 9 Commissioner Birken moved and Commissioner Burlingame seconded a motion to recommend approval of Planning Case 26-006 for Zoning Code Amendments Ordinance 2026-OXX to Chapter 13 in Section 1320.16 — Inclusionary Housing of the Arden Hills City Code to add language to address an identified need for affordable housing production within the City as discussed in the April 8, 2026 Report to the Planning Commission with the amendments as discussed. The motion carried unanimously (7-0). UNFINISHED AND NEW BUSINESS A. Election of Vice Chair Community Development Director Reilly requested the Planning Commission elect a Vice Chair for 2026. Commissioner Erler moved and Chair Collins seconded a motion to elect Ben Lindau as Vice Chair of the Planning Commission for 2026. The motion carried unanimously (7-0). REPORTS A. Report from the City Council Councilmember Weber provided the Commission with an update from the City Council. He explained the Council passed a moratorium on detention facilities in the City, approved the sign standard adjustments for the fire station and approved the site plan review and variances for Scale Model Supply. He reported the Norwegian Foot March would be held on Saturday, April 18 at the Red Bull facility. B. Planning Commission Comments and Requests Commissioner Bjorklund supported the City having a simple definition in place for ADU's. He indicated he would also like to see the Commission doing more when it comes to make recommendations to the City Council when it comes to housing. Commissioner Erler understood the inclusionary housing policy was the first step for the City and he was proud the City was moving in this direction. 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Approval for authorization to publish summary ordinance requires an affirmative vote offour councilmembers. Background In the fall of 2025, the City Council requested staff begin developing an affordable housing policy for new residential developments in the City of Arden Hills. Staff prepared several presentations about the history of, and existing market conditions related to construction, cost, and affordability of new housing in the nation, state of Minnesota, the Twin Cities metropolitan region, Ramsey County and Arden Hills. The City of Arden Hills Planning Commission has review and recommendation authority over proposed changes to Chapter 13 — Zoning Code and held a public hearing at the April 8, 2026, Page 1 of 3 regular meeting of the Planning Commission for the proposed changes to Chapter 13. Four residents commented at the public hearing. One written comment was received from the Twin Cities Housing Alliance. The Commission recommended approval of Ordinance 2026-007 as amended by the Planning Commission and provided in Attachment A by a 7-0 vote. Findings of Fact The Planning Commission offers the following findings of fact for your consideration. General Findings: • The City of Arden Hills is proposing to amend ordinance language for Chapter 13 — Zoning Code by adding Section 1320.16 Requirements for Affordable Housing. • The proposed ordinance is consistent with the adopted Comprehensive Plan policies to: o Encourage the incorporation of affordable and life -cycle housing into new development and redevelopment where feasible. o Identify programs, policies, and strategies that encourage aging in community for senior citizens. • The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income. • Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. • There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. • New residential development can accommodate demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. • The preservation of naturally occurring affordable housing (NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. • Economic integration of affordable housing within market -rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. • Amendments to the Zoning Code regulations require a public hearing prior to action by the City Council. • The Planning Commission held the required public hearing on April 8, 2026. Options and Motion Language The Planning Commission reviewed this application at the April 8, 2026, meeting. At that time, they recommended approval of Planning Case 26-006 by a 7-0 vote with amendments to add two additional affordability options and one additional density bonus option. Adoption of Ordinance 2026-007 for Planning Case 26-006 for Zoning Code Amendments to Chapter 13, Arden Hills Zoning Code • Approval: Move to adopt Ordinance 2026-007 approving Planning Case 26-006 for a zoning code amendment to Chapter 13, adding Sec2026, 1320.16 — Requirements for Page 2 of 3 Affordable Housing to the Arden Hills City Code to add language to address an identified need for affordable housing production within the City, based on the findings of fact and submitted materials in the April 23, 2026 Report to the City Council. • Approval with Amendments: Move to adopt Ordinance 2026-007 approving Planning Case 26-006, as amended, for a zoning code amendment to Chapter 13 adding Section 1320.16 — Requirements for Affordable Housing to the Arden Hills City Code to add language to address an identified need for affordable housing production within the City as discussed in the April 23, 2026, Report to the City Council. • Deny: Move to deny Planning Case 26-006 for Zoning Code Amendments to Chapter 13 of the Arden Hills City Code to add language to address an identified need for affordable housing production within the city, based on the following findings: findings to deny should specifically reference the reasons for denial and why those reasons cannot be mitigated. • Table: Move to table Planning Case 26-006 for Zoning Code Amendments to Chapter 13 of the Arden Hills City Code to add language to address an identified need for affordable housing production within the city: a specific reason and/or information request should be included with a motion to table. Authorization to Publish Summary Ordinance • Approval as Presented: Move to approve authorization to publish a Summary Ordinance of 2026-007 for Planning Case 26-006, Zoning Code Amendments to Chapter 13, adding Section 1320.16 — Requirements for Affordable Housing to the Arden Hills City Code to add language to address an identified need for affordable housing production within the City. • Denial: Move to deny authorization to publish a Summary Ordinance of 2026-007 for Planning Case 26-006, Zoning Code Amendments to Chapter 13, adding Section 1320.16 — Requirements for Affordable Housing to the Arden Hills City Code to add language to address an identified need for affordable housing production within the city. • Table: Motion to table authorization to publish a Summary Ordinance of 2026-007 for Planning Case 26-006, Zoning Code Amendments to Chapter 13, adding Section 1320.16 — Requirements for Affordable Housing to the Arden Hills City Code to add language to address an identified need for affordable housing production within the city. Budget Impact N/A Attachments Attachment A: Draft Ordinance 2026-007 Requirements for affordable housing Attachment B: Draft Summary Publication Ordinance 2026-007 Attachment C: Presentation Page 3 of 3 Attachment A Public hearing draft ordinance April27, 2026 ,!It -AR�EN HILLS ORDINANCE NO.2026-007 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA AN ORDINANCE AMENDING CHAPTER 13, ZONING CODE, SECTION 1320 OF THE ARDEN HILLS CITY CODE TO INCLUDE A NEW SECTION 1320.16 REQUIREMENTS FOR AFFORDABLE HOUSING THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA, ORDAINS: SECTION 1. Chapter 13 - Zoning Code, Section 1320 is hereby amended by adding a new subsection 1320.16 Requirements for Affordable Housing and the underlined language as follows: 1320.16 Requirements for Affordable Housing. Subd. 1 The City Council of Arden Hills finds and declares the following: A. The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income (AMID B. Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. C. There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. D. New residential development can accommodate existing demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. E. The preservation of naturally occurring affordable housing_(NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. F. Economic integration of affordable housing within market -rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. Subd. 2 Purpose. The purpose of this ordinance is to: ATTACHMENT A Public hearing draft ordinance April27, 2026 A. Maintain a balanced community that provides housing opportunities for households at all income levels. B. Ensure housing opportunities for employees of businesses located in Arden Hills and the surrounding region. C. Implement affordable housing goals and policies contained in the City's Comprehensive Plan. D. Promote economic integration by including affordable units within market -rate developments. E. Create affordable housing without requiring public subsidies or tax increment financing. Subd. 3 This ordinance is adopted pursuant to: A. Minnesota Statutes & 462.358, subd. la, which authorizes municipalities to adopt ordinances for the purpose of increasingthe he supply of affordable housing using land use mechanisms. B. Minnesota Statutes § 462.358, subd. 11, which authorizes municipalities to enter into agreements requiring affordable housing with established pricing and long- term affordability controls; and C. Minnesota Statutes � 473.859, which requires municipal comprehensive plans to promote creation of affordable housing for low- and moderate -income individuals and families. Subd. 4 Definitions. The following terms shall have the meanings indicated: AFFORDABLE. Housing is affordable when a household pays no more than 30% of gross household income for housing costs, including rent or mortgage payment, utilities fees, and charges. AFFORDABLE RENTS. The rent and utilities for the affordable housing units will be based on payment standards by Zip code using Small Area Fair Market rents, as established by the Metro HRA or, as applicable, MN Housing income limits, US Department of Housing and Urban Development income limits, the Multifamily Tax Subsidy Projects (MTSP) Income Limits are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits or tax exempt housina bonds authorized under the Internal Revenue Code as adiusted annuallv. AFFORDABLE HOUSING UNIT. A dwelling unit that has income and rent restrictions pursuant to this ordinance to ensure affordabilitv for eliizible households. AREA MEDIAN INCOME (AMI). The median household income as most recentlX determined by the U.S. Department of Housing and Urban Development (HUD,) for the Minneapolis -St. Paul -Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, adiusted for household size and number of bedrooms. DENSITY BONUS UNIT. A unit as a result of an increase in density permitted above the per acre limit established by the city code ATTACHMENT A Public hearing draft ordinance April27, 2026 DEVELOPMENT. A new residential or mixed -use development, including construction in phases or stages, for which city approvals are being or have been sought. DWELLING UNIT. One or more rooms designed for residential use by a single household, containing cooking, living, iving, sanitary, and sleeping facilities. ELIGIBLE HOUSEHOLD. A household with annual income at or below 80% of AMI for rental units, or at or below 110% of AMI for ownership units. MARKET -RATE UNIT. A residential dwelling unit not subject to affordability restrictions under this ordinance. NATURALLY OCCURRING AFFORDABLE HOUSING (NOAH). Existingrental ental housing that is affordable to households at or below 60% of AMI without public subsidy, typically_ constructed between 1940 and 1990 and classified as Class B or C real estate pro e SUBSTANTIAL REHABILITATION. Improvements to a property where the cost exceeds 20% of the grope . value excluding land, after improvements. TENANT PAID RENT. The monthly rent for an affordable dwelling unit shall include rent, utility costs and any other non -optional monthly occpancy charges. WORKFORCE HOUSING. Housing affordable to households earning between 60% and 80% of AMI, typically needed by teachers, public safety_ personnel, healthcare workers, and other essential workers. Subd.5 Applicability. A. This ordinance applies to the followingdevelopment evelopment types: 1. New multifamilv residential developments creating 20 or more dwelling units. 2. Mixed -use developments with a residential component of 20 or more dwelling units. 3. Substantial rehabilitation or reconstruction of existing buildings containing 20 or more dwelling units. 4. Conversion of non-residential buildings to residential use creating 20 or more dwelling units. 5. Those developed on property_ purchased from the City of Arden Hills unless a waiver is recommended by the Arden Hills Planning Commission and approved by the Arden Hills City Council. 6. The development must comply with this Inclusionary Housing Ordinance as amended and approved by the city council as of the date the development enters into a development agreement with the city_ B. Calculation of Units/Payment in Lieu For phased developments, the affordable housing requirement shall be calculated based on the total number of units in all phases. Affordable units shall be provided proportionately across phases. ATTACHMENT A Public hearing draft ordinance April27, 2026 When calculating the number of affordable units required, any fraction of 0.5 or greater shall be rounded un to the nearest whole number: fractions less than 0.5 shall be rounded down. It is the strong preference of the city that each new qualifyin dg evelopment provides its proportionate share of affordable housing. However, the city recognizes that it may not be economical or practical in all circumstances to do so. The City Council may waive this requirement, if and when circumstances so dictate, as determined by the city. In lieu of providing affordable housing in each new development, the city may consider a cash payment in lieu of providing affordable housing units, known as a Total Buy In (TBI) fee. The TBI shall be equal to $150,000 per unit rounding up to the next whole unit. The TBI is due in cash or certified funds in full to the City at the time of issuance of the building permit. A buildings permit will not be issued unless the TBI is paid in full. Subd. 6 Affordable Housing Requirement A. New Development Requirements 1. Developments subject to this ordinance shall provide affordable housing units according to the following standards: Options (Choose one) Affordability Standard Maximum household income Minimum % of Units 1 Ext. low income 30% AMI 5% 2 Very low income 50% AMI 5% 3 Low income 60% AMI 7.5% 4 Workforce housing 80% AMI 10% 2. On -site parking shall be provided(either surface or enclosed) for affordable units and shall be included within the affordable sales price and/or affordable rent. At least one enclosed parking stall shall be included in the purchase price of an affordable for -sale unit in the same manner as offered to buvers of market -rate units. 3. For ownership housing (condominiums, townhomes/twin homes, duplexes, triplexes, rowhouses, and four-plexes), at least 10% of units shall be affordable to households at or below 110% of AMI, including any related and required association or management fees. B. Naturally Occurring Affordable Housing_(NOAH) Replacement Requirement. If a development demolishes or converts NOAH units, the new development must ATTACHMENT A Public hearing draft ordinance April27, 2026 replace those units at a minimum rate of 20% of total units affordable at 60% AML Replacement units shall be comparable in bedroom count and total bedroom square footage to the demolished units. C. Integration and Design Standards 1. Distribution and Integration. Affordable units: a. Shall be distributed throughout the development and not concentrated in any single building, floor, or section. b. Shall be proportionately distributed across all unit types(studio, 1- bedroom, 2-bedroom, 3-bedroom, etc.). c. Shall be indistinguishable from market -rate units in terms of exterior appearance and quality of construction. d. May be either "fixed" or "floating." Fixed units are those identified by unit number and never change. Floating units may change over time as long as the total number of units and any specific quantity of bedroom sizes or total square footage in the property remains compliant with the original Development Agreement. 2. Comparable Quality. Affordable units shall: a. Have the same design, materials, and construction quality as market -rate units. b. Have comparable square footage and room sizes to market -rate units of the same bedroom count. c. Have comparable furniture. fixtures and eauipment to market -rate units. d. Have access to the same amenities, facilities, and services as market -rate units. e. Have proportional access to narking. including both surface and enclosed arking if available. 3. Family -sized Units. Developments of 60 or more units shall include a minimum number of 3-bedroom or larger units. The followingtable able establishes minimum requirements: Total Development Units Minimum 3+ Bedroom Units 60-99 3 100-150 5 150+ 5% of total Age -restricted developments (55+) shall include at least one 3-bedroom or larger unit per floor, for floors of the structures)/building(s) that are at least 40 percent leasable residential space. Subd. 7 Affordability Controls ATTACHMENT A Public hearing draft ordinance April27, 2026 A. Rent Limits. Maximum rent for affordable units, including utilities, parkin and nd all mandatory fees, shall not exceed 30% of the applicable AMI level adjusted for household size and bedroom count. Rent limits shall be based on Metro HRA Small Area Fair Market Rents or Minnesota Housing income limits, whichever is more restrictive. B. Rental affordable dwelling units shall be rented only to income eligible families during the period of affordability. A household that was income eligible at initial occupancy may remain in the affordable dwelling unit for additional rental periods as long as the income of the household does not exceed one -hundred fogy percent (140%) of the applicable AMI. C. Period of Affordability. Affordable units shall remain affordable for a minimum of 20 years from the date of initial certificate of occupancy. Affordability shall be secured through a recorded covenant or deed restriction approved by the City Attorney, D. Non -Discrimination. Developers, owners and managers shall not discriminate against prospective tenants on the basis of source of income. Projects subject to this Policy shall accept tenant -based rental housing assistance including but not limited to Section 8 Housing Choice Vouchers, HOME tenant -based assistance and Housing Support. Tenants with rental assistance may occupy an affordable dwelling unit with the rent charged not exceeding the maximum allowed by Metro HRA or the assistance provider. Subd. 8 Regulatory Incentives. To offset the costs of providing affordable housing without public subsidy, developments meetingthe he requirements of this ordinance, are eligible for the following re ug latory incentives: A. Density Bonus. Developments providing affordable units at or below 80% AMI may receive a density bonus of up to 25% above the maximum density otherwise permitted, provided the increase does not negatively impact surrounding, properties or conflict with comprehensive plan goals. Developments providing affordable units at or below 60% AMI may receive a density bonus of up to 50% above the maximum density otherwise permitted, provided the increase does not negatively impact surrounding properties or conflict with comprehensive plan goals. The density bonus shall not increase the number of required affordable units. B. Lot Size and Width Reduction. Minimum lot size and lot width requirements may be reduced by up to 25% for developments meeting affordability requirements, subject to site plan approval and findings that public health, safety, and welfare are protected. C. Lot Coverage Increase. Maximum lot coverage may be increased by up to 10% for developments meeting affordability requirements, subject to adequate stormwater management and site plan approval design review. D. Expedited Review. Applications for developments providing affordable units shall receive priority review by city staff and may be placed ahead of other applications in the review queue. ATTACHMENT A Public hearing draft ordinance April27, 2026 E. Parking Flexibility. The City may consider parking reductions of up to 25% for developments meeting affordability requirements, provided adequate parking is demonstrated through a parking study and subject to conditions ensuring affordable unit residents have equitable access to parking at no additional charge. Subd. 9 Affordable Housing Plan A. Required Submission. All developments subject to this ordinance shall submit an Affordable Housing Plan as part of the final development plan application. The plan shall be approved by the City Council prior to issuance of building permits. B. Plan Contents. The Affordable Housing Plan shall include: 1. Total number of units and number of affordable units by AMI level. 2. Unit mix showing bedroom counts or total square footage of leasable space for both market -rate and affordable unit types. 3. Site plan and floor plan showing location and distribution of affordable units. 4. Proposed rent levels for affordable units demonstrating compliance with affordability limits. 5. Management plan describing marketing, tenant selection, income verification, and annual reporting procedures. 6. Phasing plan showing, proportional development of affordable and market -rate units (if applicable). 7. Draft affordability covenant or deed restriction in form approved by the City Attorney. Subd. 10 Development Agreement A. Reauired Agreement. Prior to issuance of building hermits. the developer shall execute a Development Agreement with the City. The agreement shall incorporate the approved Affordable Housing Plan and set forth all commitments and obligations of both parties. B. Recorded Covenant. The developer shall execute and record with the County a covenant or deed restriction, in form approved by the City Attorney, that runs with the land and ensures continued affordability of designated units for the required period. The covenant shall be recorded prior to issuance of certificates of occupancy_ C. Right of First Refusal. The agreement may include a right of first refusal providing the City or designated affordable housing organization with the option to purchase the property before it is offered on the open market, to preserve long-term affordability_ Subd. 11 Monitoring and Compliance A. Annual Reporting. Property owners shall submit an annual report to the City Administrator or designee by February 1 of each year, containing_ 1. Total number of units and number of affordable units by AMI level. 2. List of all affordable units or sum total/percentage of leased square footage of affordable units. 3. Current rent for each affordable unit. ATTACHMENT A Public hearing draft ordinance April27, 2026 4. Income verification documentation for new tenants. 5. Vacancy information. 6. Certification of compliance with all requirements of this ordinance and the Development Agreement. B. Monitoring and Inspection. The City reserves the right to inspect records and properties to verify compliance with affordability requirements. Inspections shall be conducted upon reasonable notice and during normal business hours. C. Phasing Compliance. For phased developments, certificates of occupancy for market - rate units shall not be issued until a proportionate number of affordable units in that phase have received certificates of occupancy and are available for occupancy. Subd. 12 Alternative Compliance. The City Council mayqpprove alternative methods of compliance that provide equal or greater public benefit than strict application of this ordinance. Any alternative proposal shall: A. Provide at least as manv affordable units at the same or lower income levels. B. Maintain or exceed the quality and design standards required by this ordinance. C. Demonstrate compelling circumstances justifying the alternative approach. D. Be recommended for approval by city staff with detailed findings supporting the public benefit. Subd.13 Enforcement A. Violations. Failure to comply with the requirements of this ordinance or the Development Agreement constitutes a violation subject to enforcement action. Violations may result in withholding of certificates of occupancy, revocation of permits, civil penalties, or other remedies available under law. B. Remedies. The city mgy pursue any remedy available under law or equity to enforce this ordinance. Remedies are cumulative and not exclusive. Subd.14 Administration A. Guidelines and Procedures. The City Administrator may adopt administrative guidelines and procedures to implement this ordinance, subject to approval by the City Council. Guidelines shall be published and made available to developers and the public. B. Annual Evaluation. The City Administrator or designee shall provide an annual report to the City Council by October 1 of each year evaluatingthe he implementation and effectiveness of this ordinance, including the number of affordable units created, compliance rates, and recommendations for amendments. ATTACHMENT A Public hearing draft ordinance April27, 2026 C. Periodic Review. The City Council shall review this ordinance at least every five years to ensure it remains responsive to local housing needs, market conditions, and regional housing goals. Amendments may be adopted following public hearing as required by state law. SECTION 2. If any section, subsection, paragraph, sentence, or clause of this ordinance is held to be unconstitutional or invalid, the remaining portions shall remain valid and in force. The City Council declares that it would have passed each provision independently. SECTION 3. This Ordinance shall become effective immediately upon its passage and publication according to law. A Summary of this Ordinance will be published in accordance with state statute. PASSED and ADOPTED this of the City of Arden Hills, Minnesota. ATTEST: Julie Hanson, City Clerk day of , 2026, by the City Council CITY OF ARDEN HILLS David Grant, Mayor Attachment B SUMMARY ORDINANCE NO. 2026-007 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA AN ORDINANCE AMENDING CHAPTER 13, ZONING CODE, SECTION 1320.16 — REQUIREMENTS FOR AFFORDABLE HOUSING OF THE ARDEN HILLS CITY CODE THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA, ORDAINS: Pursuant to Minnesota Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance. The text amendments adopted by the City Council amends Chapter 13 — Zoning Code of the Arden Hills, Minnesota Code of Ordinances to add Section 1320.16 — Requirements for Affordable Housing to identify when and how affordable units may be required to be included in new housing developments and in rehabilitation of existing housing units, including regulatory incentives and provisions for enforcement. A printed copy of the whole ordinance is available for inspection by any person during the City's regular office hours or on the City's website. APPROVED for publication by the City Council of the City of Arden Hills, Minnesota, this day of , 2026. CITY OF ARDEN HILLS David Grant, Mayor ATTEST: Julie Hanson, City Clerk Published in the Pioneer Press on , 2026. L Cl a� ct u ct M c1 a� O � N M e-� (..) 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