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HomeMy WebLinkAbout04-08-2026 PC PacketAPPROVAL OF THE AGENDA APPROVAL OF MINUTES Draft 02 -04 -26 Planning Commission Minutes DRAFT 02 -04 -26 PC MINUTES.PDF PLANNING CASES Planning Case 26 -006 –City Of Arden Hills –Ordinance Amendments To Chapter 13 -Zoning Code Adding Section 1320.16 Requirements For Affordable Housing Jake Reilly, Community Development Director MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF UNFINISHED AND NEW BUSINESS Election Of Vice Chair COMMENTS AND REPORTS Report From The City Council Planning Commission Comments ADJOURNMENT ADJOURN A quorum of the City Council may be present at this meeting. Chair: Joshua Collins (2027) Commissioners: Brad Bjorklund (2028) Steve Erler (2026) Ben Lindau, Vice Chair (2026) Patrick Burlingame (2027) Nancy Jacobson (2027) Jessica Birken (2027) Katie Stromberg - Alternate (2026) SJ Julius -Alternate (2027) Council Liaison: Kurt Weber Planning Commission April 8, 2026 6:30 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 Commissioners may be participating in this meeting by interactive technology/remotely. Agenda CALL TO ORDER 1. 2. 2.A. Documents: 3. 3.A. Documents: 4. 4.A. 5. 5.A. 5.B. 6. APPROVAL OF THE AGENDAAPPROVAL OF MINUTESDraft 02 -04 -26 Planning Commission MinutesDRAFT 02 -04 -26 PC MINUTES.PDF PLANNING CASES Planning Case 26 -006 –City Of Arden Hills –Ordinance Amendments To Chapter 13 -Zoning Code Adding Section 1320.16 Requirements For Affordable Housing Jake Reilly, Community Development Director MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF UNFINISHED AND NEW BUSINESS Election Of Vice Chair COMMENTS AND REPORTS Report From The City Council Planning Commission Comments ADJOURNMENT ADJOURN A quorum of the City Council may be present at this meeting. Chair:Joshua Collins (2027)Commissioners:Brad Bjorklund (2028)Steve Erler (2026)Ben Lindau, Vice Chair (2026)Patrick Burlingame (2027)Nancy Jacobson (2027)Jessica Birken (2027)Katie Stromberg -Alternate (2026)SJ Julius -Alternate (2027)Council Liaison:Kurt Weber Planning Commission April 8, 2026 6:30 p.m. City Hall Address:1245 W Highway 96Arden Hills MN 55112Phone:651 -792 -7800Website:www.cityofardenhills.orgCity VisionArden 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 desirableCity 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 -MeetingsSome Commissioners may be participating in this meeting by interactive technology/remotely.AgendaCALL TO ORDER1.2.2.A.Documents: 3. 3.A. Documents: 4. 4.A. 5. 5.A. 5.B. 6. Approved: April 8, 2026 CITY OF ARDEN HILLS, MINNESOTA PLANNING COMMISSION WEDNESDAY, FEBRUARY 4, 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, Assistant Public Works Director Lucas Miller, and Council Liaison Kurt Weber. APPROVAL OF AGENDA – FEBRUARY 4, 2026 Commissioner Erler moved, seconded by Commissioner Burlingame, to approve the February 4, 2026, agenda as presented. The motion carried unanimously (7-0). APPROVAL OF MINUTES December 3, 2025 – Planning Commission Regular Meeting Commissioner Lindau moved, seconded by Commissioner Burlingame, to approve the December 3, 2025, Planning Commission Regular Meeting as presented. The motion carried unanimously (7-0). December 10, 2025 – Planning Commission Regular Meeting Chair Collins requested a change to the minutes on Page 6 noting the public hearing was opened and closed at 6:46 p.m. Commissioner Birken moved, seconded by Chair Collins, to approve the December 10, 2025, Planning Commission Regular Meeting as amended. The motion carried unanimously (7-0). ARDEN HILLS PLANNING COMMISSION – February 4, 2026 2 PLANNING CASES A. Planning Case 26-003 – City of Arden Hills – Ordinance Amendments to Zoning Code Section 1140.08 Stormwater Management – Public Hearing Community Development Director Reilly stated the City of Arden Hills is one of Minnesota’s approximately 248 entities required to obtain National Pollutant Discharge Elimination System (NPDES) Permits and develop Stormwater Pollution Prevention Programs (SWPPPs). The Minnesota Pollution Control Agency (MPCA) updates Municipal Separate Storm Sewer System (MS4) Language every five years. In 2025, the MPCA issued new MS4 Permits with updated language to take effect for the permit cycle of 2025 through 2029. Entities typically have up to two years to comply with the new rules. City Staff worked with a consultant to update the language within the City’s Code of Ordinance to correctly reflect the revisions required by the MPCA for the new MS4 permit rules. Community Development Director Reilly reported the City of Arden Hills Planning Commission has review and recommendation authority over proposed changes to Chapter 11 Subdivisions, Chapter 12 – Signs, and Chapter 13 – Zoning Code. There is a related ordinance change to Chapter 15 – Erosion and Sediment Control. The City of Arden Hills is required to amend Chapter 11 Subdivisions to bring it into conformance with required updated rules set by the Minnesota Pollution Control Agency. The proposed amendment includes revisions to Section 1140 Required Improvements. Proposed changes to Chapter 15 – Erosion and Sediment Control and Chapter 10 – Utilities was further discussed. The package of ordinances is anticipated to be considered together at the March 9 City Council meeting and are presented as a package as they are related to one set of rule changes from the MPCA. 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. Commissioner Birken stated she supported the proposed changes as the amendments would bring the City into compliance with the MPCA. Commissioner Burlingame concurred. Commissioner Lindau inquired if the reference to the watershed district should remain in the Ordinance. Community Development Director Reilly reported this reference would remain in the Ordinance. Assistant Public Works Director Miller explained this Ordinance would align the city with federal and state requirements. He indicated the ordinance has nothing to do with the Rice Creek Commons area, but rather does reference being aligned with the Rice Creek Watershed District. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 3 Commissioner Bjorklund asked what was meant by an inch. Commissioner Birken explained that she believes the reference is for a miner’s inch, a unit of measure for water volume. Commissioner Bjorklund suggested the reference to 3.V.I be omitted. Assistant Public Works Director Miller stated he would look into this. Community Development Director Reilly reported he would reconcile the numbering within the Ordinance prior to this item going to the City Council. Commissioner Jacobson questioned what the length of time was for the long-term maintenance agreements. Assistant Public Works Director Miller indicated the length of time would be agreed upon for each project through negotiations between the City Engineer, himself and the applicant. Chair Collins opened the public hearing at 6:46 p.m. Chair Collins invited anyone for or against the application to come forward and make comments. There being no comment Chair Collins closed the public hearing at 6:46 p.m. Commissioner Burlingame moved and Commissioner Bjorklund seconded a motion to recommend approval of Planning Case 26-003 for Ordinance Amendments to Chapter 11 of the Arden Hills City Code concerning Subdivisions related to Stormwater Management directing staff to amend the numbering structure. The motion carried unanimously (7-0). B. Planning Case 26-001 – 3535 Pine Tree Drive – Site Plan Review for Sign Standard Adjustment – No Public Hearing Required Senior Planner Fransen stated in Planning Case 24-009, the Applicant applied for a Master and Final Planned Unit Development to construct a 41,000 square foot headquarters fire station facility which was approved by the city. Senior Planner Fransen explained the proposal included a 30 square foot freestanding monument with 36 square feet of signage and two (2) non illuminated wall signs for a total of 28 square feet to be located on the east and west elevations. At the Planning Commission meeting on July 10, 2024, the Applicant clarified the proposed monument signage and stated their intent to comply with the sign code and that flexibility would not be sought for signage. Senior Planner Fransen commented since those approvals in 2024, and prior to applying for required sign permits, the Applicant determined that a change in the proposed signage is needed. The Applicant is proposing two (2) wall signs, one non illuminated 88 square foot sign reading “Lake Johanna Fire Department” and one internally illuminated 75 square foot sign reading “Station 110,” both on the eastern elevation of the building. In addition to the two wall signs, the Applicant’s plans include an edge lit graphic logo sign measuring 72 square feet that would also ARDEN HILLS PLANNING COMMISSION – February 4, 2026 4 be attached to the eastern elevation of the building. No wall signage is proposed for the west elevation of the building. The Applicant is requesting flexibility to allow the facility wall signage to exceed the permitted 45 square feet by 190 square feet for a combined total of 235 square feet. Senior Planner Fransen added that for monument signage, the Applicant is proposing one (1) sign measuring 6 feet in height and 79 square feet in area with 33.5 square feet in non illuminated sign copy area. The proposed sign would exceed the permitted 37.5 feet by 41.5 feet and the sign copy area would exceed the permitted 25 feet by 8.5 feet. Senior Planner Fransen stated based on the signage described, the previous PUD Amendment approval, and the requirements for the Subject Property’s Sign District, staff advised the Applicant to submit a land use application for a sign standard adjustment as described in Chapter 12, Section 1260 of the city’s Code of Ordinances. Adjustments to the requirements and standards for the height, number, type, lighting, area and/or location of a sign may be approved with a Site Plan Review or Planned Unit Development process. The sign flexibility that the Applicant is seeking under this proposal for the Subject Property has been initiated through the Site Plan Review process. Senior Planner Fransen reviewed the Site Data, the Plan Evaluation and provided the Findings of Fact for review: 1. The Applicant applied for Site Plan Review to install 163 square feet in wall signage and 72 square feet in graphic signage on the eastern elevation of the building and install a 79 square foot freestanding monument with 33.5 square feet of sign copy at the subject property, 3535 Pine Tree Drive. 2. On December 9, 2024, the City Council approved a Planned Unit Development Agreement for the Subject Property. 3. The Subject Property is located in the B-2 General Business District and is guided as Community Mixed Use on the 2040 Land Use Plan. 4. The Subject Property is located in Sign District 7, where the maximum wall signage permitted is 45 square feet. 5. In Sign District 7, the maximum freestanding signage permitted is 25 square feet. 6. Graphic signs are not permitted in Sign District 7. 7. The Subject Property has no existing signage. 8. Adjustments to the requirements and standards for the height, number, type, lighting, area, and/or location of a sign or signs established by this Chapter may be approved with a Site Plan Review or a Planned Unit Development process as described for in Section 1320 and 1355 of the Zoning Code. 9. Flexibility through the Site Plan Review process has been requested for 163 square feet of wall signage and 72 square feet of graphic signage bringing the total building wall signage to 235 square feet. 10. Flexibility has also been requested for 33.5 square feet of freestanding signage. 11. The proposed signage plan does not conflict with the general purpose and intent of the Zoning Code or the Comprehensive Development Plan for the City. 12. The application is not anticipated to create a negative impact on the immediate area or the community as a whole. 13. The proposed plan will not produce any permanent noise, odors, vibration, smoke, dust, air pollution, heat, liquid, or solid waste, and other nuisance characteristics. 14. A public hearing is not required for Site Plan Review. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 5 Senior Planner Fransen reviewed the options available to the Planning Commission for Planning Case Planning Case 26-001 for a Sign Standard Adjustment through the Site Plan Review: 1. Recommend Approval with Conditions 1. The project shall be completed in accordance with the plans submitted. Any significant changes to these plans, as determined by the Community Development Director, shall require review and approval by the Planning Commission and City Council. 2. A separate sign permit shall be required for each proposed sign. 3. All signage shall meet all other requirements of Sign District 7. 2. Recommend Approval as Submitted 3. Recommend Denial 4. Table Chair Collins opened the floor to Commissioner comments. Commissioner Bjorklund inquired if staff had any examples where graphics signs have been permitted in this type of zoning district. Senior Planner Fransen explained she did not have an example for this zoning district. Commissioner Bjorklund questioned how the city viewed the sculpture. Senior Planner Fransen indicated the sculpture did not have any words and therefore was not considered a sign. Community Development Director Reilly reported the statue was not a sign, it was a sculpture. He explained art was not considered a sign and was not included in the sign request. He stated the U.S. Constitution only allows the city to regulate time, manner, and place when it comes to signs. He commented further on how the phoenix is considered graphic art. Lake Johanna Fire Chief Tim Boehlke addressed the Planning Commission and explained the statue was not part of the sign request. He indicated the statue was included in the site plans, but he was uncertain the statue would move forward. Commissioner Jacobson inquired if the fire station was located on County Road E, would the building be allowed to have more signs. Senior Planner Fransen explained generally the sign districts that have frontage along Lexington Avenue have the highest allotment and those properties along County Road E would have the second highest allotment. She reported this property was located within Sign District 7, which allowed for less available signage. Commissioner Jacobson asked what the total wall signage was for the fire station. Senior Planner Fransen indicated the sign code allows for a total of 45 square feet of wall signage for the site and the request is for 163 square feet of wall signage. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 6 Commissioner Jacobson commented after visiting several other fire stations, she noticed fire stations are open 24/7. She discussed how the signage on fire stations was not for wayfinding purposes because the buildings were always lit up. She questioned if it was necessary to exceed the sign code requirements by three times. She indicated she was not certain she could support having a wall sign this large on the fire station. She noted she was also concerned about the graphic sign. Chair Collins commented on how Flaherty’s had a graphic sign (a three-leaf clover), which was located just across the street from the fire station. Commissioner Jacobson questioned if the city would be doing its due diligence by allowing the fire station to have three times the amount of signage that was allowed within City Code. She was of the opinion that fire stations were already recognizable without large amounts of signage. She indicated she was not comfortable with the proposed signage. Commissioner Bjorklund agreed, noting the fire station did not have to market itself to the public. He explained he was also concerned about the graphic sign portion of this request. Commissioner Lindau stated he believed the sign requests were reasonable. Commissioner Burlingame reported all Lake Johanna apparatus, trucks and vehicles already have the phoenix emblem on them. He explained based on staff analysis it appears a sign standard adjustment was being evaluated primarily under Subdivision 3, which allows for consideration of the current land use. In this case, the land use was a public emergency services facility. He stated fire stations function differently than other typical commercial uses. He noted this building would serve as an emergency response facility as well as a civic landmark and community gathering space. He supported the building having a clear, visual identity, including symbolic identification as this could serve a legitimate public purpose particularly for public way finding and mutual aid. He indicated the plan evaluation notes the proposed signage was consistent with the purpose of the B-2 General Business District and would not negatively impact the adjacent properties. He appreciated the attention that was given to the lighting plan and the use of the red spectrum illumination. He recommended if this request were to move forward that the Commission be clear the support comes as a narrow civic exception tied to the public safety and community function of the facility. If framed in this manner, he could support the sign standard adjustment. Commissioner Birken stated she supported the proposed sign design and noted she would be proud to have this fire station in her community. She realized the signage was three times the size that City Code would allow but was of the opinion the signs would look strange if shrunk down by two-thirds. She questioned why graphic signs were not allowed in the business district and she looked forward to the Planning Commission being able to review the sign code. Chair Collins commented he supported the proposed signage and noted this was a unique case because this was a civic facility. He understood this project did not meet current sign standards but noted this was not the first sign standard adjustment that has come before the Planning Commission. He stated these were large signs, but noted this building was set back from the roadway and they were up high, which meant the scale had to be adjusted. He provided further information on how graphics were included in signs throughout the community. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 7 Commissioner Burlingame stated if this request were approved, the Commission could consider language noting because this was a public emergency services facility, the use of graphic signage would not set a precedent. Senior Planner Fransen indicated this language could be included as a finding that notes the proposed use was a public use and identifying signage alerts the public this was a public facility. Commissioner Erler requested the applicant speak further to the phoenix symbol and why this was chosen by the Lake Johanna Fire Department. Fire Chief Boehlke explained the phoenix was adopted by the Lake Johanna Fire Department as its lead symbol years ago. He indicated it is used in a lot of different applications, including uniforms and is adopted as a symbol of public fire service. He reported the symbol is unique to this fire department as is the fire station number, which is Station 110. He stated the Station 110 designation is assigned by Ramsey County. He discussed how the fire department markets itself on a daily basis and was constantly working to show the value of the department to the community. He understood the fire department was asking for more signage than was allowed, but he questioned how old the City’s sign code standards were. He stated he started out with smaller signs on the building, but it was apparent to him that the scale was off. He encouraged the Commission to consider how the size and scale of buildings was different from when the sign code was first written and therefore the size and scale of signage would have to be adjusted. Assistant Chief Matt Sather provided further information on which signs would be illuminated on the building. Commissioner Burlingame requested the Fire Chief speak to how this facility would serve as a community gathering space after severe storms or emergency situations. Fire Chief Boehlke stated this building would not serve as a storm shelter, but noted tours, community events and open houses would be held at the new fire station. He anticipated the new fire station could serve as an EOC (emergency operations center) should an event occur in the community. Commissioner Bjorklund asked if any social activities for the fire fighters would be held at the fire station. Fire Chief Boehlke explained social activities would not be held at the fire station, but numerous training events would be hosted onsite. Commissioner Bjorklund commented he still believed the proposed signage was leaning towards marketing. He was of the opinion the graphic is too large and should not move forward. Commissioner Lindau indicated he supported the size and scale of the signs and graphics for the fire station. He discussed how the proposed signage tied the Lake Johanna Fire Department brand all together. Chair Collins asked if there were any Commissioners that believed the graphic portion of the sign request should not move forward. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 8 Commissioner Bjorkland indicated he could not support the graphic portion of the sign request. He explained the scale of the signs was also a concern for him. Commissioner Jacobson recommended a finding be drafted to state not all businesses within this district can disregard the sign code standards. Commissioner Burlingame moved and Commissioner Bjorklund seconded a motion to recommend approval of Planning Case 26-001 for a Sign Standard Adjustment through the Site Plan Review process to install up to 163 square feet in wall signage, 72 square feet in graphic signage, and 33.5 square feet in freestanding signage at 3535 Pine Tree Drive based on the findings of fact and the submitted plans, as amended by the conditions in the February 4, 2026, report to the Planning Commission adding a finding of fact that reads: The Planning Commission finds the requested sign standard adjustment is appropriate due to the public emergency services use of the property and the functional need for clear identification and that approval of this request was based on the specific land use and site context and does not constitute a general precedent for Sign District 7. Commissioner Bjorklund reiterated that he would be voting against this request because he believed the signage was serving marketing purposes, was not needed at the proposed scale and was too costly for the public. The motion carried 6-1 (Commissioner Bjorklund opposed). C. Planning Case 25-016 – 3628 Connelly Avenue – Site Plan Review – No Public Hearing Required Senior Planner Fransen stated the Applicant has submitted a land use application for Site Plan Review and Variances at the Subject Property. The Applicant seeks to purchase the property and relocate an existing retail business, Scale Model Supplies, from Saint Paul to Arden Hills. The Subject Property is owned by Waters Edge Enterprises Inc., and the building is occupied by JV Pallets, a company that manufactures and recycles wood pallets. The existing use is an existing nonconforming use that has been in operation as a light industrial/manufacturing and warehousing site since 1959. The B-2 zoning district today does not allow this use as a principal use. The proposed retail use is permitted within the B-2 zoning district. Senior Planner Fransen explained the proposal includes reconfiguring access to the parking lot and restriping parking spaces within the existing parking lot. Three existing parking spaces, partially located within the right-of-way, are proposed to be removed and replaced with landscaped areas. The Applicant proposes to convert an overhead door to a standard retail dual door entryway. Other minor modifications to the exterior of the structure are proposed for safe and convenient access to the structure for customers. Senior Planner Fransen reported the proposal includes a request to allow for fewer on-site parking spaces than required in the Zoning Code. The Applicant states the existing parking lot accommodates up to 24 parking spaces and that this number is sufficient to operate the business. Scale Model Supplies has been in business for more than 43 years. The store specializes in model trains and model kits as well as other hobby-related products. The business owner seeks to downsize from a 20,000 square foot space located in Saint Paul and find a space compatible with growing the online sales side of the business. The Applicant anticipates using approximately 7,500 square feet for retail sales and the remaining 1,800 square feet would be allocated for ARDEN HILLS PLANNING COMMISSION – February 4, 2026 9 office, storage, restrooms, and utilities. The Subject Property would allow for a combination of retail space for direct sales and inventory space for both direct and online sales. Senior Planner Fransen indicated the business is open Monday through Sunday, 10 a.m. to 6 p.m. with typically four (4) employees on site at a given time. The business receives deliveries from standard-size courier vans and does not regularly use overhead doors or a loading dock. The Applicant states these operations are likely to continue. The Applicant states that on the busiest days, the business does not require more than 22 parking spaces at one time. Recent checks showed that at the current location, a maximum of 13 spaces have been used at one time, and the average number of parked cars is eight. The store is a destination for customers who plan their visit, know what they are looking for, and do not linger for long periods of time. Therefore, sales are typically spread throughout the day, and the existing parking lot will accommodate the need. Senior Planner Fransen reviewed the Plan Evaluation and provided the Findings of Fact for review: General Findings: 1. The Subject Property is located within the General Business District designated for Community Mixed Uses on the 2040 Comprehensive Plan. 2. The Subject Property is zoned B-2 General Business. 3. The Subject Property contains an existing nonconforming principal structure and existing nonconforming setbacks, landscaping and parking lot. 4. The Subject Property has been used for manufacturing continuously since 1959. Manufacturing is not a permitted use in the B-2 General Business District. 5. The Applicant submitted site plan review and variance applications to establish a retail sales use in an existing manufacturing and warehousing facility at 3628 Connelly Avenue. Retail sales is a permitted use in the B-2 General Business District. 6. Site Plan Review is required for conversions from one permitted use to another permitted use when the new use has a greater off-street parking requirement than the existing use. In the parking requirements table, manufacturing use falls under the category of Other Business and Industry, which requires a minimum of 1 for each 1,000 square feet of floor area, or 10 required parking spaces. The minimum number of off-street parking spaces required for retail sales use is 1 for each 150 square feet of gross retail sales floor space. The Applicant proposes to dedicate 7,500 square feet of the structure sales floor space, which would require 50 off street parking spaces. 7. The Zoning Code requires 50 parking spaces for a retail use with Applicant is seeking site plan approval to operate a retail sales use with 24 off street parking spaces where the Zoning Code requires 50 parking spaces. 8. The Applicant is seeking a variance from design standards in Section 1325.06 related to required parking location, parking islands, landscaping, boulevard trees, and window and door openings. 9. The Applicant is proposing to remove three existing parking spaces that encroach on the right-of-way from Connelly Avenue and to increase the landscaped area on the property. 10. The Applicant requests to waive the requirement for a traffic study. The Applicant offers sufficient data in the application to demonstrate the proposed use will not result in a large amount of additional traffic and that the current conditions of the site can support the anticipated traffic. 11. The proposed plan does not conflict with the general purpose and intent of the Zoning Code or the Comprehensive Development Plan for the City. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 10 12. The proposed use is not anticipated to create a negative impact on the immediate area or the community as a whole. 13. The proposed plan will not produce any permanent noise, odors, vibration, smoke, dust, air pollution, heat, liquid, or solid waste, and other nuisance characteristics. 14. The proposed plan is not expected to have significant impact on traffic or parking conditions. 15. A public hearing is not required for site plan review. 16. Property owners within 500 feet of the subject property were notified of the application as established in city code. Variance Findings: 17. The Applicant is seeking variances from design standards in Section 1325.06 related to required parking location, parking islands, landscaping, boulevard trees, and window and door openings. 18. Variances are only permitted when they are in harmony with the general purposes and intent of the ordinance. 19. The proposed is in harmony with the general purpose and intent of the ordinance. 20. The proposed is a reasonable use of the property that would not be allowed under the rules of the Zoning Code without the requested variance. 21. The proposed would not alter the essential character of the neighborhood. 22. The variance request is not based on economic considerations alone. 23. A public hearing is not required for variance requests Senior Planner Fransen reviewed the motion options available to the Planning Commission for Planning Case 25-016 for a site plan review and variance to establish a retail sales use at 3628 Connelly Avenue: 1. Recommend Approval with Conditions 1. The project shall be completed in accordance with the submitted plans as amended by the conditions of approval. Any significant changes to these plans, as determined by the Community Development Director, shall require review and approval by the Planning Commission and City Council. 2. The proposed parking area shall conform to all other regulations in the City Code. 3. A Building Permit shall be obtained for alterations to the existing principal structure. 4. All light poles, including base, shall be shoebox style, downward directed, with high pressure sodium lamps or LED and flush lenses. Other than wash or architectural lighting, attached security lighting shall be shoebox style, downward directed with flush lenses. In addition, any lighting under canopies (building entries) shall be recessed and use a flush lens. 5. A Right-of-Way permit shall be obtained from the City’s Engineering Department prior to working in the right-of-way including, but not limited to parking lot resurfacing, driveway apron installation, and installing curb and gutter. 6. Curb and gutter must be installed according to the City’s standard plate. 7. A Grading and Erosion permit shall be obtained from the City’s Engineering Department prior to commencing any grading, land disturbance or utility activities greater than 2,500 square feet. The Applicants shall be responsible for obtaining any permits necessary from other agencies, including but not limited to Rice Creek Watershed District and Ramsey County prior to the start of any site ARDEN HILLS PLANNING COMMISSION – February 4, 2026 11 activities. Verification of approved permits or documentation from other agencies that a permit is not necessary shall be provided to the City. 8. A separate sign permit shall be required for each sign on the site. 9. Any future trash enclosure shall use gates and be constructed on three sides using the similar or complementary materials, colors, and patterns used on the building. Locations shall be approved by the Planning Department. 10. All disturbed boulevards shall be restored with sod. All areas of the site, where practical, shall be sodded or seeded and maintained. The property owner shall mow and maintain all site boulevards to the curb line of the public streets. 2. Recommend Approval as Submitted 3. Recommend Denial 4. Table Chair Collins opened the floor to Commissioner comments. Commissioner Jacobson asked if the current business was leaving the community. Senior Planner Fransen reported this was the case. She explained the applicant would be purchasing the site. Commissioner Jacobson stated she appreciated all of the improvements that would be made to the site. She inquired if the parking lot could be altered in such a way that it would drive through to the next property. Senior Planner Fransen explained the adjacent property was private and there was not a city street between the two properties. She commented on the grade change between the two properties, noting a through roadway would not be feasible. Commissioner Jacobson requested further information on the right-of-way to the left that was in yellow on the map. She stated it appears there was not much area for landscaping. Senior Planner Fransen indicated this area was showing the constraints for the landscaped area. She reported this type of request did not require a full landscaping plan but noted the applicant has indicated a willingness to plant trees. Commissioner Jacobson questioned if runoff from the building should be a concern. Senior Planner Fransen commented if there was a change to the land area over 2,500 square feet a grading and erosion permit would be required. She did not anticipate downspouts would fall under this category. Community Development Director Reilly clarified that the building official and public works staff would ensure runoff from one property was not going to another. He reported staff would work with the applicant to ensure water was going to the right place. Commissioner Bjorklund inquired why this building was allowed to exist in its current condition. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 12 Community Development Director Reilly stated like most cities, staff responds to complaints when addressing the City’s nuisance ordinance. He explained because the applicant had brought forward a new use for the property, the site would now be brought into compliance with City Code. He was confident that the new owner would own and operate the property within the City’s standards. Commissioner Bjorkland indicated the number of parking spaces was only 24 when 50 parking spaces are required. Senior Planner Fransen reported this was the case. Commissioner Birken explained the business only required 13 parking spaces. Community Development Director Reilly reported the applicant has addressed the parking requirement by stating their business does not have the same level of traffic as other retail uses. He indicated the City’s parking requirements are quite significant compared to neighboring communities. Chair Collins commented the Commission would not see this request if the retail use was not included in the application. Senior Planner Fransen stated this was correct. Chair Collins stated he appreciated all of the site cleanup work and investments the applicant would be making in this property. He invited the applicant to come forward at this time. Bruce Gardner, owner of Scale Model Supplies, introduced himself to the Commission and noted he was available for comments or questions. Commissioner Lindau asked if the 22 parking spaces onsite would meet the needs of the business. Mr. Gardner stated this would be an adequate number of parking spaces. He anticipated there would be a boost in business after the move but noted he has never needed more than 22 parking spaces for his business. Commissioner Birken inquired if the trees on the far side of the building. Mr. Gardner explained these trees have been removed. Commissioner Birken encouraged the applicant to consider planting trees along this stretch of greenspace. Mr. Gardner stated he would be open to this but noted the trees would not be visible to the public. Commissioner Bjorklund questioned how the building space would be used. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 13 Mr. Gardner indicated a large portion of the building was set up as storage that he would not be using. He commented 9,500 square feet of the space would be used for retail space. He noted his 6,000 square foot slot track would not be making the move to his new facility. Commissioner Jacobson stated this would be a great tenant and business for the community. She looked forward to the proposed improvements for this building and supported this Planning Case moving forward. Commissioner Lindau indicated he supported this Planning Case moving forward as well. Commissioner Burlingame questioned if a traffic study should be completed for this Planning Case. He stated overall this would be a net improvement for the property. Senior Planner Fransen explained the Planning Commission could make a recommendation to waive the traffic study requirement. Chair Collins moved and Commissioner Lindau seconded a motion to recommend approval of Planning Case 25-016 for a Site Plan Review and Variance to establish a retail sales use at 3628 Connelly Avenue based on the findings of fact and the submitted plans, as amended by the conditions in the February 4, 2026, report to the Planning Commission adding Condition 11 to read: The Planning Commission recommends waiving the traffic study. The motion carried unanimously (7-0). UNFINISHED AND NEW BUSINESS Community Development Director Reilly reported Boston Scientific submitted a request in writing to suspend the application indefinitely. Subsequently city staff has learned that the firm intends to withdraw the application for the noise wall. He noted that Boston Scientific stated an intent to remove cottonwood trees sometime this year. City staff awaits further information from Boston Scientific. REPORTS A. Report from the City Council Councilmember Weber provided the Commission with an update from the City Council. He stated the Council has been discussing affordable housing and noted the Planning Commission would be seeing something soon. He discussed the recent items that had been addressed by the Council noting immigration enforcement was discussed. He thanked the public for all of their comments. He reported the Council would consider resolutions or ordinances at their next meeting in order to do what the City could in these difficult times. He commented on the JDA meeting, which was held on Monday, February 2. He stated the County has brought forward the idea of changing the trail widths and distances between lighting fixtures on both sides of the spine road. He indicated an amendment to the TRC would be required for the trail width and lighting spacing. He reported the JDA has asked the County to consider how to move the Rice Creek Commons project forward without a lead developer. ARDEN HILLS PLANNING COMMISSION – February 4, 2026 14 B. Planning Commission Comments and Requests Commissioner Burlingame asked if the Planning Commission had to assign a Vice Chair on a yearly basis. Community Development Director Reilly proposed the Commission addressing this matter at the next Planning Commission meeting. ADJOURN Chair Collins moved, seconded by Commissioner Lindau, to adjourn the February 4, 2026, Planning Commission Meeting at 9:18 p.m. The motion carried unanimously (7-0). Page 1 of 10 AGENDA ITEM – 3A 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. 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 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 2 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 3 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 4 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 5 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 Standard Maximum household income Minimum % of Units Commission (Att. A) Council (Att. B) 1 Very Low Income 50% AMI - 5% 2 Low Income 60% AMI 5% 7.5% 3 Workforce Housing 80% AMI 10% 10% 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 6 of 10 Table 2: Inclusionary zoning requirements in suburban communities Minimum % of Units (Rental) Standard Income limit Shoreview Bloomington Eden Prairie Edina Golden Valley Hopkins Minnetonka St. Louis Park Ext. Low Income 30% AMI - 9% 5% or - - - - 5% or Very Low Income 50% AMI 5% or 10% or 10% or 10% or 5% or 5%1 10% or Low Income 60% AMI 7.5% or 15% 20% 15% 10% 10%2 20% Workforce Housing 80% AMI 10% - - - - - - - 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 2 If no subsidy and with zoning or comprehensive plan amendment requested Page 7 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 8 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 9 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 2026-0XX 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 2026-0XX 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 10 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 2026-0XX 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 ATTACHMENT A Public hearing draft ordinance April 8, 2026 ORDINANCE NO. 2026-0XX 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 (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. 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 § 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. 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 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. 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, 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 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. Subd. 5 Applicability. A. This ordinance applies to the following development types: 1. New multifamily 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. 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 qualifying development 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 buyers 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 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. 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 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 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. Subd. 7 Affordability Controls A. 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. 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 meeting the requirements of this ordinance, are eligible for the following regulatory 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. Required Agreement. Prior to issuance of building permits, 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. 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 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 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. 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 evaluating the implementation and effectiveness of this ordinance, including the number of affordable units created, compliance rates, and recommendations for amendments. 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. ATTACHMENT A Public hearing draft ordinance April 8, 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 _____ day of ____________, 2026, by the City Council of the City of Arden Hills, Minnesota. CITY OF ARDEN HILLS By _______________________________ David Grant, Mayor ATTEST: _____________________________ Julie Hanson, City Clerk ATTACHMENT B Revisions following 2/9/2026 Council work session Page 1 of 10 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. ATTACHMENT B Revisions following 2/9/2026 Council work session Page 2 of 10 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. ATTACHMENT B Revisions following 2/9/2026 Council work session Page 3 of 10 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 approved by the city 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 ATTACHMENT B Revisions following 2/9/2026 Council work session Page 4 of 10 5.1 Percentage 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 1 Very low income 50% AMI 5% 12 Low income 60% AMI 7. 5% 23 Workforce housing 80% AMI 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 addition to meeting the standard inclusionary requirement. 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. 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 ATTACHMENT B Revisions following 2/9/2026 Council work session Page 5 of 10 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. ATTACHMENT B Revisions following 2/9/2026 Council work session Page 6 of 10 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 ATTACHMENT B Revisions following 2/9/2026 Council work session Page 7 of 10 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 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 ATTACHMENT B Revisions following 2/9/2026 Council work session Page 8 of 10 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 ATTACHMENT B Revisions following 2/9/2026 Council work session Page 9 of 10 Failure to comply with the requirements of this ordinance or the Affordable Housing 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, 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 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 ATTACHMENT B Revisions following 2/9/2026 Council work session Page 10 of 10 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. ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 1 of 9 CITY OF ARDEN HILLS INCLUSIONARY HOUSING ORDINANCE LANGUAGE DRAFT V1 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 ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 2 of 9 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 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. ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 3 of 9 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% AMI 5% Low Income 60% AMI 7.5% Workforce Housing 80% AMI 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 ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 4 of 9 addition to meeting the standard inclusionary requirement. 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. 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. ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 5 of 9 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 ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 6 of 9 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 ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 7 of 9 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 ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 8 of 9 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 ATTACHMENT C Draft Ordinance Language February 9, 2026 Page 9 of 9 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.