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HomeMy WebLinkAbout04-13-26 WSApproved: May 11, 2026 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION APRIL 13, 2026 5:30 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the City Council Work Session at 5:30 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Tena Monson, Emily Rousseau and Kurt Weber Absent: None Also present: City Administrator Jessica Jagoe, Public Works Director/City Engineer David Swearingen, Finance Director Joua Yang, Assistant Public Works Director Lucas Miller, Community Development Director Jake Reilly, Assistant to the City Administrator/City Clerk Julie Hanson, and Senior Planner Elena Fransen Councilmember Monson proposed tonight's agenda be rearranged to make sure there is time to discuss items that have been on the agenda for some time and time has not allowed for those discussions. She would like to discuss ADUs first, the EDC Work Plan and the CIP Equipment before recessing for the Council Meeting. Councilmember Monson also would like to discuss rearranging future City Council Meeting agendas so that any item that requires action, along with a Public Hearing can be completed under the Public Hearing section of the agenda, rather than New Business. That would allow for the public to hear the result of the item, without waiting through additional public hearings. Mayor Grant said he and City Administrator Jagoe arranged tonight's City Council meeting a little better, placing the public interest items at the top. He said Council can discuss this, if there is interest. Councilmember Holden said we've always strived to have items that require discussion with a non -staff presenter/guest at the top. If we move ADUs to the top, the EDC Commissioners for that ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 2 discussion will have to wait. She also thinks people who want to hear the ADU discussion may not have arrived yet, thinking that discussion will take place later. Councilmember Rousseau said she is generally in favor of that but tonight she would love to have the EDC Commissioners come first. There are four commissioners and Senior Planner Fransen here for that discussion. City Administrator Jagoe said the Community Development Director has not arrived yet and he will be leading the ADU discussion. She noted that Senior Communications Coordinator Michlig is in attendance to discuss the State of the City item. She said the agenda setting format is scheduled to be discussed at the April 27 meeting. That would allow us to decide on format prior to the May meetings where planning cases will be presented. Councilmember Weber said despite the fact that there are others waiting for other topics, he is eager to discuss ADUs and wouldn't want it to continue to be pushed out because we don't have time to get to it. Mayor Grant said the State of the City Discussion should be brief. We have EDC members present. He proposed those discussions should be' first and the ADU discussion can be moved up, prior to the Public Works discussion. Councilmember Monson does not want to talk about State of the City before ADUs, the EDC Work Plan or the CIP. She doesn't care what order those items are discussed in, but those are the three she would like to see at that top. Councilmember Rousseau would like to focus on the EDC. She appreciates that the State of the City is on the agenda, however we have been waiting months to discuss ADUs. She is okay with omitting the State of the City discussion, for tonight. Mayor Grant proposed striking State of the City for tonight and Senior Communication Coordinator Michlig can send her questions to Council via email. He would like to have the EDC discussion first, ADUs second and the Public Works CIP Equipment discussion third. Council agreed to that reorganization of the agenda topics 1. PUBLIC INQUIRIES/INFORMATIONAL None. 2. RESPONSE TO PUBLIC INQUIRIES None. 3. AGENDA ITEMS State of the ` it' , Di (Item 3A on published agenda. Struck from Agenda.) State A. Economic Development Commission (EDC) Work Plan (Item 3B on published agenda) ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 3 Senior Planner Fransen, Economic Development Commission Chair Jud Murchie, Commissioners Ihsan Isik, Kristine Poelzer and Ted Brausen introduced themselves and joined the discussion. Senior Planner Fransen said there have been conversations surrounding how the EDC can help serve the Arden Hills community. The commission has been working on building momentum over the past few years. The Work Plan was developed with the City's 2026-2027 Strategic Plan in mind. Commissioners identified a mission that states the EDC is a bridge connecting Arden Hills businesses with the City. Their goals include the EDC connecting with businesses to understand their needs, as well as leveraging the City's operations to support Arden Hills business. She noted the EDC's work on Sign Code. She also outlined that the EDC participated in in -person visits to business locations and facilitated a Common Grounds business event in 2025. EDC Chair Murchie said the EDC Members have been discussing how we can create spaces for businesses to connect with each other but also looking for opportunities to be a bridge between businesses and the City. He said the Sign Code is an example of where those two things overlap. We aren't saying what the Sign Code should be, but we can provide the feedback that we hear from the business community. He shared examples of how EDC can help produce newsletter features and suggest sponsorship costs for large events. Councilmember Holden said she knows commissioners are working hard but there hasn't been a lot of success. The survey results were disappointing. When asking businesses to complete a survey, you have to get the survey to the right person. The only way to do that is to go in person. She asked if any issues have been identified for why the survey didn't get a big response. EDC Commissioner Brausen said a lot of the businesses are franchised so you aren't going to find the owner there if you stop in. The owners want appointments. He thought we received some really good information. He believes that if the EDC continues to engage businesses with events like the Common Grounds breakfast, and businesses become aware of the work that the EDC is doing, it will help. He also said Arden Hills has never been known as a business -friendly community. That needs to change. Given support and the right education the EDC could help the City to attract new businesses. We shouldn't just be looking to the open land for business generation. We need to look at the established parts of Arden Hills. He said Council thinks about things differently than the residents and business owners on the EDC. We have to invest the time to work together. Councilmember Holden asked how the EDC can grow attendance at the business breakfast if one of the issues with the survey was franchising. EDC Commissioner Brausen said he thinks we were thinking too small. The survey should maybe have been targeted at the larger companies because they are the ones who will invest more in the City. We have to be prepared for TCAAP. That will be a really good tax base. Councilmember Holden said some of the property is owned by people or companies that aren't in Minnesota. She shared an example of one company that was doing business here but the building owner, who is based in New York, tripled the rent and that company had to move. She would like to see the EDC help problem solve for those situations. EDC Chair Murchie said those are the kinds of questions the EDC can take on. We can talk to business owners and see how often that is happening. Sometimes we hear from one or two people about something but everyone else is happy. EDC can help find the balance. ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 4 Councilmember Rousseau said she is hearing a need for engagement with the larger businesses. She said there is an opening on the EDC. She asked if we have any contacts at the bigger companies that we could reach out to and that Council provide direction to staff to reach out to gauge interest in joining the commission. Mayor Grant asked what the work plan is with the Arden Hills/Shoreview Business Council. Senior Planner Fransen said the Twin City North Chamber of Commerce Business Council has been renamed Arden Hills/Shoreview Business Connect. The opportunities that the EDC identified are to take a more active role in those events. They have seen a lot of growth in attendance. The EDC is strategically considering how to engage with businesses at those events. EDC Chair Murchie said the EDC has members who are established business owners in Arden Hills but also new businesses. The EDC is asking how we can learn from those who have been here a long time and also bring new ideas. One thing we know is business owners are busy. Creating another meeting is not always the best thing. The Business Connect group will help us better engage and meet new partners in an established setting. We can use it to inform our own ideas for speakers. We can have a once -a -year EDC business event dedicated to just Arden Hills businesses. Councilmember Monson said she thinks the EDC is doing a great job and is learning what works and what doesn't from their previous efforts. She thinks the EDC Work Plan looks great. She wanted to highlight how helpful the Council Strategic Plan has been. It gave boundaries and this commission was able to drill down and directly link their work to the strategies City Council identified as priorities. Councilmember Weber said he appreciates what the EDC is doing. He pointed out that some of the survey respondents said "no" when asked if they would like to be contacted. He thinks some of the ideas like highlighting businesses in the newsletter will encourage more businesses to participate. EDC Chair Murchie said the more we engage, the more involvement we will get back. Councilmember Holden said when she was on the EDC years ago, most businesses were satisfied. There wasn't a lot of interest. That's how the EDC died out. She thinks the younger generation wants to be more involved. She said the Twin City North Chamber has a whole segment of their organization for manufacturing businesses. She cautioned about newsletter spotlights. If you highlight a new business, established businesses get upset. EDC Commissioner Brausen said (the City of) Ramsey has a sign that highlights businesses and recognizes milestones, not just new businesses. EDC Chair Murchie said the EDC is trying to understand how many of the businesses we actually know of. Do we have updated contact information? Do we know what that business does? How do we learn who else is out there and how do we reach them? Councilmember Rousseau said, as Council Liaison, she has heard a lot of great foundational conversations asking, "Who are we?" The commission has been very thoughtful about how to bring value to the community. She thinks this work plan will be a great guideline over the next two years. ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 5 Discussion ensued that the EDC can do a lot more, if Council wants it. It was suggested that the EDC have a booth at the 75 h Anniversary Celebration. Further discussion ensued regarding in -person visits and how EDC will proceed with the visits seeking sponsorships. Staff updated how much has been collected in sponsorship support, noting that a few emails have been received showing interest. Mayor Grant thanked the EDC Members. He thinks this is a great work plan. B. Accessory Dwelling Unit (ADU) Discussion (Item 3E on published agenda) Community Development Director Reilly said an Accessory Dwelling Unit (ADU) is a permanent, self-contained residence. They can be inside an existing structure, an attached unit that does not have a door between the new unit and the existing structure or a detached stand-alone structure. There is also something called a junior ADU. He is researching that a little more. He understands them to be smaller units to the primary dwelling and may not be suitable for more than one person. He outlined that ADUs are not temporary medical dwelling units or granny pods, they aren't tiny homes on wheels or any other semi -permanent structure that could be rolled away on a trailer. ADUs are occupied year-round and can be rented or owned. They are not typically used as short term vacation rentals in metropolitan areas. Community Development Directory Reilly provided options for the Council's consideration when writing the ordinance. Some of the items to be discussed include: lot size, location of the lot within the city, how many total structures are allowed, and how many structures can be occupied full time. Something that is common is to allow additions only. That could include demolishing an existing garage to build in the same footprint or finishing out a basement. Other considerations include parking, design standards, number of stories, and foundation requirements. An approach that is becoming more common is having local architects create a catalog of designs that municipalities can adopt to remove the uncertainty. Additional considerations that would be in an ordinance include landscaping, impervious surface, and hard cover. Community Development Director Reilly said one aspect that is open to debate is to decide if utilities can be extended from the primary structure or if they need to connect directly into the water and wastewater system from the new residential unit. Council can also consider how these residential units can be used. Is it work space? Does the resident of the new unit need to be related to the existing owner? Must the main residence be owner occupied? Because this is two living spaces on one lot, a decision about whether one can be sold should be made. Community Development Director Reilly said it can take a while for communities to ramp up ADU construction. It can be expensive to build or add an ADU. People often take out a home equity line of credit. If someone converts a basement or garage, there could be less cost than to build a completely separate structure. Councilmember Holden said she keeps hearing "a lot of cities". She asked how "a lot" is measured. Is it five communities? Is it ten? Are they all in Minnesota? Community Development Director Reilly said it's thousands across the United States and hundreds in Minnesota. ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 6 Councilmember Monson said she spent time on the model local ADU ordinance from AARP. She thinks it outlines that it doesn't have to be overwhelming. A lot of the restrictions are already defined for existing residents. The reasoning behind their recommendations is sound. She supports a property owner's right to do what they need to do for their family. If we say they can't be rented, we may not see very many. Councilmember Weber said he spent time looking at the table of surrounding cities. Wastewater is charged based on water usage. He asked if Public Works Director/City Engineer Swearingen if he thinks an ADU would have its own meter, billing would go through the primary property. Public Works Director/City Engineer Swearingen said we would want to meter the water. He would hesitate to tie into the trunk main more than we need to for both water and sewer. He'd have to research it more to determine the best solution. He thinks it may be easier to have just one meter for billing purposes. Community Development Director Reilly said it has become more common for there to be separate meters for all units in rental properties, regardless of if there are 50 units or 2. Councilmember Weber said another concern is breakers. We wouldn't want a main breaker in the principal structure so the ADU wouldn't have access to it. Community Development Director Reilly said electricity would commonly be its own breaker for each residence. Councilmember Weber said it is an accessory unit. He presumes energy providers will prefer to go through the main unit. He thinks, of the cities on the table, Hopkins has the best layout. He is curious why some of the cities didn't include internal ADUs. He thinks that would be the most common. Community Development Director Reilly said a lot of those communities consider an attached and internal to be the same. They function the same so they didn't create different rules for them. Councilmember Weber wants to set guidelines but doesn't want there to be too much oversight. Prohibiting short-term rentals is important and more conversation is needed on additional parking. He thinks the occupants of the ADU are less likely to have their own transportation. Councilmember Rousseau said there are several things on the list that are musts for her. No short- term rentals, limiting it to one ADU and design standards that complement the principal structure. She would like to see this move forward. She asked what Staff need tonight to get us to the next stage of discussion. Community Development Director Reilly he said if each Councilmember could share their desired inclusions and what items are a definite no, it will be helpful to bring a more fleshed out draft ordinance, possibly in May. Councilmember Holden said the surrounding communities aren't in the table that was provided with the agenda packet. She talked to Roseville. They completed a 2-year study before passing their ADU ordinance. She thinks rental licensing is an important component to this. She thinks 10% of the city is rental property. This feels like step two in the rental licensing conversation, but we ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 7 haven't completed step one. Homes are being bought up by corporations and they are renting them out and there's ten people living there. We can't stop that. There are so many issues with rental properties. One of the big things for this ordinance will be owner occupancy. We shouldn't support corporations increasing their rent potential by allowing them two units on one parcel. She doesn't like the idea of detached ADUs. She thinks it will change the neighborhood. The information in the packet says that was unfounded but that study was done in 2009. Things have changed a lot since then. Councilmember Holden continued, saying Roseville and Shoreview took two years and did a lot of work on their ordinances but we don't have that information. The packet outlines that this would not solve Arden Hills share of need, but we have met that need, based on the Metropolitan Council's numbers. She doesn't want ADUs to be detached. There should be no short-term rentals. We need to limit the number of ADUs allowed on each property. She would like to see rental licensing in place before allowing ADUs. She does not want to allow the ADU to be sold to another person. If a homeowner decides to build an ADU, those two structures should be owned by the same person. Otherwise, we have a duplex, and we have rules for that, already. She said having two units connected to the water and sewer system through one line, gets complicated. That is especially the case when you talk about the two structures being owned by different owners. Who's responsible for it then? Another thing to think about is we already know there are rental houses and people are living in basements with no egress windows. We know there are situations where there are more than four unrelated renters. We can't take blood samples. How do we deal with that? If ADUs are going to be open for everybody, the size needs to be big enough for everybody. If someone rents out an ADU, the utilities should be part of the rent with the ultimate responsibility falling on the owner. Mayor Grant would encourage that Council take the time to think this through. Once we do it, it can't easily be undone. He understands property rights. He thinks when most Arden Hills residents bought their homes, they didn't expect the neighbor to install a detached unit behind their home. What if someone lives on a lake? Can we allow construction of an ADU and block another resident's view of the lake? We have zoning code that says that it can't be done. He spent time in California where this is a popular solution, and they are using '/ and 3/ to identify three or four addresses for one home. He thinks one of the occupants must be the owner. That will keep corporations from buying up all the available homes. He would prefer to see them be allowed internally only, in an upper story, a basement or above a garage. He doesn't want detached. Lot size should be a consideration. He agrees short-term rentals should not be allowed. He doesn't know how we can enforce allowing only long-term rentals because we don't have a rental license program in place. He thinks that should come before the ADUs. Adding ADUs without a rental license program will be an issue. We need to keep the affordable housing inventory that we have. When those homes are sold to corporations, the only motive is profit. They will charge as much as they can. He said Minneapolis thought this would solve their affordable housing issue. It did not meet their expectations, at all. He is concerned about changing the character in Arden Hills. He encouraged Council not to rush and to take the time to get this right. Other communities took two years. We need to think through all the options before doing anything. Staff put together a lot of good information, however, this is a starting point not the end. Location is also a factor. They should not be allowed in the front yard. Setbacks should mirror the requirements for any other home. Lot cover and impervious surface need to be considered, as well. The list of what can be done is long. He wants to encourage Council to take the time to think it through. ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 8 Councilmember Rousseau said she is hearing that Mayor Grant and Councilmember Holden want at least two years to study this and add a rental license program first. This is a lot to take on for Staff, as well. She is wondering if we should send it to the Planning Commission, assuming Staff has what they need, and bring the Planning Commission's ideas back to us. Councilmember Weber agreed. Mayor Grant said we can discuss the Planning Commission in the couple of minutes before we recess for the regular Council Meeting. Councilmember Holden said she never said she wanted to take two years. It is her opinion that we need a rental licensing program first, however long that takes. She thinks Council needs to discuss this. Does everyone want to allow detached and attached? Does everyone agree on size? She said this is a Council decision, not a Planning Commission decision. We need to create guidelines for the Planning Commission to consider. They aren't elected officials. It's important for us to have that oversight. Mayor Grant stated he didn't say two years, either. He said he wants a rental license program. Councilmember Weber pointed out that three of five Councilmembers support advancing this to the Planning Commission. He wants this moved on as quickly as possible. Mayor Grant would like to continue this conversation after the recess. Council recessed the Work Session at 6: 55 pm. Council reconvened the Work Session at 9:29 pm. Mayor Grant reminded that before the recess, Council was discussing advancing this item to the Planning Commission. Councilmember Holden would like to clarify everyone's opinion on detached ADUs. We're talking about sending this to Planning Commission. Council needs to give them direction. Councilmember Weber said the discussion before the recess gave a lot of direction. We've been stating our preferences and Staff is taking notes. Mayor Grant asked Staff to summarize what has been said so far. Community Development Director Reilly said he heard requests for more information on how the utilities would function. There was clear direction that short-term rentals will not be allowed. He heard one ADU should be allowed per lot and to maintain the same lot coverage we have today. He heard "as allowed by right" from two people. He heard that one of the structures needs to be occupied by the owner. He heard general approval for attached ADUs but there is a difference in opinion on what detached could mean. He wanted to note that we already do not allow accessory structures in the front yard so that wouldn't be an option for this. Mayor Grant asked each Councilmember to state their preference. Councilmembers Weber, Rousseau and Monson said they are good with detached units. ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 9 Councilmember Monson said a detached ADU functions as an accessory structure. If someone already has a chicken coop and a shed, they wouldn't be allowed to have an ADU without removing one of those other structures because only two accessory structures are allowed. She asked if a detached garage, with an ADU on top would be one or two. Community Development Director Reilly said it would be one accessory structure. Councilmember Holden said a garage is only allowed to be so many square feet. If you add an ADU above it, you are changing the square footage of the garage. She thinks we should only allow attached ADUs because of the water and sewer hook ups. If we allow a detached ADU we almost can't go through the main house. She said someone could put an addition that is built toward the front yard. We would allow that. Community Development Director Reilly clarified that he heard Council saying they didn't want a detached unit being plunked into someone's front yard. An attached ADU addition that extends further into the front yard may be allowed depending on other factors. Mayor Grant said he does not want to allow detached. Discussion ensued about existing regulations that allow a resident to expand a home toward the front property line. This is no different from expanding the same home the same amount for the purpose of an ADU. However, if an ADU were constructed in this way, it would need a separate entrance on the side or the rear, not in the front. Community Development Director Reilly said he heard some say they wanted to ensure we are thoughtful in regards to the viewshed. We already have ordinances covering this and those ordinances will come into play. He said he heard concerns that just because someone has a big lot, it shouldn't mean they can build an ADU which is essentially a whole other house on the property. He asked if Councilmembers had a particular number in mind for a maximum ADU footprint or square footage. Discussion ensued regarding what Staff would recommend and what is typical. Council thinks 800 square feet is a fair number. Councilmember Holden said if someone builds this for an ageing parent and that parent passes, what's to stop them from knocking down that wall and using that additional space. Community Development Director Reilly said the homeowner would have to come in for a remodeling permit. We can make a provision that it can't be converted back. Councilmember Weber would like to see a little more information on the square footage. He wouldn't want to go too low that a two -bedroom ADU wouldn't be possible. He said 800 fees tight to him and 900 feels better. Councilmember Holden said TCAAP has recommendations of 750 square feet in some places. Those were supposed to be for families. She is happy with 800 square foot maximum. Community Development Director Reilly said some smaller communities use a percentage of the home's gross living area or a certain square footage. ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 10 Councilmember Weber said Arden Hills, in general, has large lots for single family homes but the homes on those large lots aren't necessarily large homes. Basing the ADU size on existing square footage is limiting. Allowing a 950 square foot ADU in the back yard on those large lots may be appropriate. Councilmember Holden said we keep referring to AARP. They say 800 square feet. They have done studies. Mayor Grant asked if Council could agree to set it at 800 square feet before it goes to Planning Commission. Council agreed on 800 square feet. Community Development Director Reilly said parking needs to be discussed. He disagreed with an earlier comment. He believes it is more likely that people with lower incomes will have a car. He thinks at least one should be required. Especially considering there is no public transit here. That may require some reconfiguring of the maximum number of operable vehicles allowed on the lot and where they need to be stored. Councilmember Rousseau would be interested in exploring this on a case -by -case basis. Councilmember Monson is okay doing it on a case -by -case basis but she would prefer not to require it. That would involve taking another look at on -street parking. Community Development Director Reilly said the final thing he gathered is a strong interest in a rental licensing program. Mayor Grant said Council also requested that Staff look into what surrounding cities are doing for ADUs. Councilmember Rousseau said as part of the strategic planning road mapping talked about rental properties. Can we tie in the licensing discussion? Could we have something in place by the end of the year? City Administrator Jagoe said she didn't know if we would have something in place but we could have the discussion. Councilmember Monson would like to see Staff present the rental licensing with a recommendation up front, based on what others are doing, so we aren't starting from scratch. City Administrator Jagoe asked if Council reached a consensus about if an ADU could be sold separately from the primary residence. Council agreed that an ADU shall not be sold separately. The owner owns both structures. Community Development Director Reilly said he would like to have a conversation about corporate ownership of rental properties, in general. He thought that could be addressed in the future. There are efforts at the federal and state level to address corporately owned rentals. ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 11 Councilmember Rousseau said when we have that conversation, she wants to see what the other surrounding cities are doing. Councilmember Holden asked if we can get the information on who owns property and set limits? She said just look down County Road D, not to mention the group homes. Corporations are starting to buy stuff and turn them into group homes. C. Public Works CIP Equipment Discussion Not Discussed. D. Volunteer Recognition Policy Not Discussed. E. E1. Human Rights Commission And E2 Immigration Enforcement Discussion (Item 3F1 and F2 on published agenda) Not Discussed. F. Code of Conduct (Item 3G on published agenda) Not Discussed. G. Rice Creek Commons/TCAAP Discussion (Item 3H on published agenda) Not Discussed. H. Agenda Planning (Item 3I on published agenda) Not Discussed. 4. COUNCIL/STAFF COMMENTS Councilmember Rousseau wanted to discuss the comment on group homes. She said the Brooklyn Park/Champlin area are getting a lot of police calls due to the group homes. She doesn't see the same pattern with our police. She doesn't have an understanding about how many we have in the community. She doesn't know if it's impacting the number of police calls we have. It would be nice to know more about that. Councilmember Holden said the people crawl out the windows so the police have to come and try to find them. That has happened multiple times. Councilmember Rousseau said we get a report from the sheriff regarding unsheltered people. She wondered if the sheriff is tracking the calls related to group homes. ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 13, 2026 12 Councilmember Holden said legally we aren't supposed to know they're group homes. They weren't taking their garbage cans in. Cars were parked all over. She knocked on the door. She was told they were so-and-so company and it was none of her business. Councilmember Monson said it is permitted through the state, but we should still be able to enforce our ordinances. Councilmember Holden said you can, but the people who work and live there aren't interested. ADJOURN Mayor Grant adjourned the City Council Work Session at 10:00 p.m. Jen ing David Grant D ty Clerk Mayor