Loading...
HomeMy WebLinkAbout04-08-26 PC Minutes Approved: June 3, 2026 CITY OF ARDEN HILLS, MINNESOTA PLANNING COMMISSION WEDNESDAY, APRIL 8, 2026 6:30 P.M. - ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Chair Collins called to order the regular Planning Commission meeting at 6:30 p.m. ROLL CALL Present were: Chair Joshua Collins, Commissioners Jessica Birken, Brad Bjorklund, Patrick Burlingame, Stephen Erler, Nancy Jacobson and Ben Lindau. Absent: None. Also present were: Community Development Director Jacob Reilly and Council Liaison Kurt Weber. APPROVAL OF AGENDA – APRIL 8, 2026 Commissioner Erler moved, seconded by Commissioner Birken, to approve the April 8, 2026, agenda as presented. The motion carried unanimously (7-0). APPROVAL OF MINUTES February 4, 2026 – Planning Commission Regular Meeting Chair Collins noted there was a minor change to the minutes on Page 8. Commissioner Erler moved, seconded by Commissioner Bjorklund, to approve the February 4, 2026, Planning Commission Regular Meeting as amended on Page 8. The motion carried unanimously (7-0). Community Development Director Reilly requested the Commission take a five-minute recess to allow staff to address a technology issue. Commissioner Burlingame moved, seconded by Commissioner Bjorklund, to recess the Planning Commission meeting at 6:35 p.m. The motion carried unanimously (7-0). Commissioner Burlingame moved, seconded by Commissioner Bjorklund, to reconvene the Planning Commission meeting at 6:48 p.m. The motion carried unanimously (7-0). ARDEN HILLS PLANNING COMMISSION – April 8, 2026 2 PLANNING CASES A. Planning Case 26-006 – City of Arden Hills – Ordinance Amendments to Chapter 13 - Zoning Code Adding Section 1320.16 Requirements for Affordable Housing – Public Hearing Community Development Director Reilly stated in the fall of 2025, the City Council requested staff begin developing an affordable housing policy for new residential developments in the City of Arden Hills. Staff prepared several presentations about the history of and existing market conditions related to construction, cost, and affordability of new housing in the nation, state of Minnesota, the Twin Cities metropolitan region, Ramsey County and Arden Hills. At the October 2025 work sessions, the City Council received information about affordable housing in Arden Hills and the relation to the housing market nationwide. Two memos, summarized below, were produced detailing the root causes of the nationwide housing crisis, the effect specific to Arden Hills and potential solutions. Community Development Director Reilly reported Arden Hills faces a significant housing affordability challenge across all income levels and age groups. About 21% of all households are cost-burdened (spending more than 30% of income on housing), rising to 52% among renters. This includes more than a quarter of households making between 60% of the Area Median Income (AMI) and 80% AMI. In real dollars that is a four- person household with an annual income between $79,440 and $104,200. The median home sale price is $465,000 with only a three-month supply on the market — well below the five-to-six months considered healthy. Average rents exceed $1,800/month. Affordability pressures extend beyond lower-income residents: over a third of older households (65+) are now cost-burdened nationally, and many Arden Hills seniors face a "lifecycle housing mismatch" with few options between large single- family homes and expensive senior care facilities. Community Development Director Reilly explained the crisis is both national and local. Home prices have risen 60% nationwide since 2019, and the U.S. homeownership rate fell in 2024 for the first time in eight years — most sharply among households under 35. Two structural forces drive the shortage: decades of underbuilding "missing middle" housing (small-scale homes and small multi-family buildings), and incomes that have not kept pace with construction costs. New tariffs are expected to add roughly $10,900 per new home, and economic uncertainty is suppressing both builder confidence and buyer demand. Locally, Arden Hills is largely built out, institutional land holdings limit developable areas, and limited public transit adds to residents' true cost of living. Community Development Director Reilly reviewed the definitions for Affordable Housing, Attainable Housing, Workforce Housing, Subsidized Housing and Naturally Occurring Affordable Housing, provided further comment on the Inclusionary Housing Ordinance and offered the following Findings of Fact for the Planning Commission: • The City of Arden Hills is proposing to amend ordinance language for Chapter 13 – Zoning Code by adding Section 1320.16 . • The proposed ordinance is consistent with the adopted Comprehensive Plan policies to: o Encourage the incorporation of affordable and life-cycle housing into new development and redevelopment where feasible. ARDEN HILLS PLANNING COMMISSION – April 8, 2026 3 o Identify programs, policies, and strategies that encourage aging in community for senior citizens. • The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income (AMI). • Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. • There is a demonstrated need to encourage the development of affordable housing for Arden Hills’ workforce and families. • New residential development can accommodate existing demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. • The preservation of naturally occurring affordable housing (NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. • Economic integration of affordable housing within market-rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. • Amendments to the Zoning Code regulations require a public hearing prior to action by the City Council. Community Development Director Reilly stated staff recommends approval of Planning Case 26-006 as presented (or as modified by Planning Commission) for Zoning Code Amendments Ordinance 2026-0XX 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. Community Development Director Reilly reviewed the options available to the Planning Commission on this matter: 1. Recommend Approval with Conditions 2. Recommend Approval as Submitted 3. Recommend Denial 4. Table Chair Collins opened the floor to Commissioner comments. Chair Collins requested staff review the questions and answers that were provided by staff prior to this meeting. Community Development Director Reilly reviewed the questions and answers he received prior to the meeting noting he has not received any public comments and indicated this ordinance would not cover Rice Creek Commons. He discussed the City’s future land use map noting where new housing developments could occur. He commented on how the ordinance was meant to be a carrot and a stick when it comes to working with developers in order to develop affordable housing units in the future. Commissioner Bjorklund asked who provided the Twin Cities affordable housing summary. ARDEN HILLS PLANNING COMMISSION – April 8, 2026 4 Commissioner Lindau explained he asked staff to pass this information along to the Planning Commission. Commissioner Bjorklund thanked staff for all of their work on this item. Commissioner Erler questioned if this ordinance could be modified through a PUD like any other ordinance. Community Development Director Reilly stated this would be the case. Commissioner Birken inquired if this ordinance would apply to any multi-family housing project over 20 units. Community Development Director Reilly commented this ordinance would apply to any housing proposal for any type of housing that was 20 units or more. Commissioner Birken asked where in the City this ordinance would apply. Community Development Director Reilly stated the mauve area on the future land use map or the area surrounding Lexington Avenue would apply. Commissioner Bjorklund questioned if housing was allowed on industrial sites. Community Development Director Reilly explained comprehensive plan and zoning code amendments would be required to allow for residential uses in an industrial use district. Chair Collins asked why staff settled on a project that had 20 housing units as the standard to include affordable housing units. Community Development Director Reilly reported this was the standard for other communities that have an inclusionary housing policy. Chair Collins opened the public hearing at 7:20 p.m. Chair Collins invited anyone for or against the application to come forward and make comment. Kristine Poelzer, 1870 Indian Place, stated ADUs were unknown to most people. She requested the city not let the lack of facts deter the city from learning more and giving serious thought to this topic. She asked that the Commission be wise with its recommendation when it comes to ADUs and to be wide in its planning in order to provide options for residents. She urged the city to consider its past when looking towards the future. She believed the city was fortunate to have Mr. Reilly’s experience in addressing this topic. She discussed how ADUs are allowing seniors to age in place while creating multi-generational housing. She spoke to how difficult it was for younger generations to get into a house at this time and stated ADs would be a positive step for the City. Mary Henry, 3521 Ridgewood Court, thanked staff for the detailed staff report. She commented on how difficult it would be for those living in poverty to live in Arden Hills. She believed 60% AMI was more reasonable for affordable housing than 80% AMI. She stated at 60% AMI housing could be provided for retail workers and assembly line workers. She encouraged the ARDEN HILLS PLANNING COMMISSION – April 8, 2026 5 Planning Commission and City Council to have greater vision on who should be served in the affordable housing units in order to make living in Arden Hills achievable for all. Lynn Diaz, 1143 Ingerson Road, stated the city has a significant affordable housing challenge across all income levels and age groups, noting 52% of renters were cost burdened. She reported Ramsey County was the most cost burdened county in the metro area. She supported allowing for more units per lot and allowing for ADUs on residential lots. She recommended minimum parking requirements not be eliminated as she did not want to see on street overnight parking. She stated overall she supported the inclusionary housing policy and encouraged the City to consider a land trust and housing trust fund. She discussed how federal funding was available to assist with deeply affordable housing units and encouraged the City to strive for this. She agreed the 80% AMI was useless and recommended the City pursue affordable housing that was at 60% AMI or less. David Radziej, 1366 Arden View Drive, stated mortgage interest rates have a great impact when it comes to affordable housing units. He encouraged the City to have a comprehensive approach when it comes to affordable housing in order to have a meaningful impact on the community. He suggested land trusts be considered and discussed how important it was for there to be State or City-wide action. He recommended the City look for ways to speed up the construction process and to limit fees in order to assist in creating new housing units that were more affordable. There being no additional comment Chair Collins closed the public hearing at 7:40 p.m. Chair Collins stated he would like to suspend Roberts Rules of Order to allow for this item to be discussed in a worksession setting. Chair Collins moved and Commissioner Burlingame seconded a motion to recess the Planning Commission meeting to a worksession meeting at 7:40 p.m. The motion carried unanimously (7-0). Chair Collins moved and Commissioner Burlingame seconded a motion to reconvene the Planning Commission in a worksession format at 7:46 p.m. The motion carried unanimously (7-0). Vice Chair Lindau summarized the information that he provided to the Planning Commission. He discussed how other cities were addressing this topic. He explained if the City wants to address affordability the City has to put in place a legal framework along with a nexus between market rate developments and affordable housing requirements. He requested staff provide the Commission with further information on LAHA dollars. Community Development Director Reilly reported LAHA stands for Local Affordable Housing Aid and was an allocation from the State to a municipality in part to make up for lack of tax capacity and support affordable housing production. He explained the LAHA funds will be deposited in the City’s coffers and must be used for affordable housing. He stated at the time this program was created, Arden Hills did not qualify because the City did not have over 10,000 residents. It was his hope the City’s population could be reevaluated in order to grant the City access to this program. Chair Collins explained the inclusionary housing policy that was presented to the Planning Commission was similar to the policy that was being followed by Shoreview. ARDEN HILLS PLANNING COMMISSION – April 8, 2026 6 Community Development Director Reilly provided further insight on the proposed inclusionary housing policy noting Edina has one of the most successful ordinances in the State. Commissioner Birken asked why the Council wanted to strike the lowest affordable housing level. Commissioner Erler stated it was his understanding the Council wanted a middle-of-the-road policy. Commissioner Lindau indicated the Council also did not want to price themselves out of the market. He questioned if the Council was aware of the fact Shoreview was allowing for lower AMI housing and these units were not being priced out. Commissioner Jacobson questioned if developers would not embrace the City’s proposed chart. Commissioner Birken commented Bloomington was not having any issues, and they were at 9% across all categories. She understood that Bloomington was a larger community that had a land trust fund and LAHA dollars available. She asked what options were available to Arden Hills, given the size of this community was so much smaller. Commissioner Bjorklund stated he understood the City could use the EDA to create TIF districts, invest earnings from affordable housing trust funds, sell real property, accept cash donations for affordable housing, and coordinate with the Met Council when it comes to LAHA funding. It was his hope the City’s EDA would be more functional going forward. Chair Collins supported the City adopting this inclusionary housing policy in order for the City to be more intentional when it comes to affordable housing. He wanted to see Arden Hills becoming more hospitable when it comes to new development. He questioned if the City had a challenge with its leadership culture or language within City Code. Commissioner Birken explained she was hoping Arden Hills would be open for business and development. She suggested higher density be considered along the Lexington Avenue corridor and that the City reconsider the approval process. She indicated she could support modifying the City’s parking requirements as well. She wanted to see the City having an increased housing supply because this would benefit the entire community. Commissioner Burlingame indicated he spoke with a number of realtors in the area. He understood the community was facing a housing crisis. He recognized that the proposed inclusionary housing policy would only apply to larger housing projects. He supported the City looking at what other tools were available to spur affordable housing. He encouraged the City Council to take action in order to have more housing brought into the community rather than unintentionally limiting development. Chair Collins commented on how the thought that more inventory would lead to lower housing prices was no longer the case because demand far outweighs what the market can provide. Commissioner Jacobson stated the perception is that Arden Hills cannot develop, given what has occurred on TCAAP over the past two decades. She understood there was a great need for more housing and agreed this was a very complicated topic. She suggested the affordability ARDEN HILLS PLANNING COMMISSION – April 8, 2026 7 levels be reconsidered within the chart in order to provide more flexibility for future tenants. She liked the idea of having flexible units for affordability with guaranteed rents. Commissioner Burlingame indicated this would require zoning code adjustments when it comes to density and setbacks. Chair Collins stated the City was revising the zoning code at this time and these topics were being considered. Commissioner Erler commented he believed the inclusionary housing policy was the first step. He understood a future step was finding funding. He supported the City getting the first step in place. Chair Collins reviewed the rental rates for 80% AMI. He indicated he would rather see the City pursuing affordable housing that goes deeper and down to 30% AMI. Commissioner Erler stated he could support the City changing the table with the lower AMI rates, noting the financing would have to be figured out in the future. Councilmember Weber requested staff provide the Commission with an overview on Section 8.1 and TIF. Community Development Director Reilly discussed the regulatory incentives that were presented in Section 8.1. He reported he added a second option for a density bonus at 50% given how the PUD functions at Rounds Lake Road and North Heights Church. He stated the 80% language could be revised if he was directed by the Planning Commission and City Council. He provided further comment on how the cost for constructing a home has increased since the pandemic. Staff noted it was potentially better for the City to have a policy in place than no policy at all because revisions could be made. Further discussion ensued regarding how Shoreview and Bloomington manage their inclusionary housing policy. The consensus of the Commission was to recommend the chart be amended to more closely reflect the Shoreview numbers with the AMI changed on the chart from 80% to 60%, with the City supporting high level density bonuses. Councilmember Weber commented on the previous housing projects that came to the City Council at Lexington Avenue. He indicated the developer believed they needed significant additional density with a baseline rent at 80% AMI. He stated the developer was asking for increased density just to construct market rate units. Chair Collins understood this to be the case but noted there were single parents that needed rental rates lower than 80% AMI. Community Development Director Reilly provided the Commission with a summary on TIF Districts and tax increment financing. Commissioner Bjorklund spoke again to the importance of getting the EDA up and running in the City of Arden Hills. ARDEN HILLS PLANNING COMMISSION – April 8, 2026 8 Commissioner Birken stated it would take time for the City to develop a housing trust fund. Commissioner Lindau spoke to the chart that was followed by Shoreview and stated this may be a good starting point for Arden Hills because this community had a similar housing market. Commissioner Erler supported the 30% AMI remaining in the chart noting the City would need additional financial tools in place in order to provide 30% AMI housing units. Commissioner Birken stated the City does not have money for any of these types of projects at this time, but that doesn’t mean the City shouldn’t be pursuing additional affordable housing units. Councilmember Weber reported there was a lot of tax-exempt land in Arden Hills that could be built on in order to bring new housing to the community. Community Development Director Reilly reviewed the cities in the metro area that have a 30% AMI clause within their inclusionary housing policy. Chair Collins appreciated how there was room for creativity for the thresholds and percentages of AMI within future housing projects. Commissioner Burlingame supported the City following the numbers from Shoreview. Commissioner Erler commented the values could be changed over time if the numbers were not working for Arden Hills. He discussed how the percentages and thresholds were a statement of value for the City. Commissioner Lindau recommended the City align its numbers with Shoreview. Commissioner Erler suggested the numbers for the chart be as follows: 80% AMI – 10% of units 60% AMI – 7.5% of units 50% AMI – 5% of units 30% AMI – 5% of units The Commission supported this proposal. Further discussion ensued regarding the density bonuses. Chair Collins suggested the density bonuses remain as is given the research that was conducted by staff. The Commission supported this recommendation. Chair Collins moved and Commissioner Bjorklund seconded a motion to recess the worksession meeting and reconvene the Planning Commission meeting at 9:44 p.m. The motion carried unanimously (7-0). ARDEN HILLS PLANNING COMMISSION – April 8, 2026 9 Commissioner Birken moved and Commissioner Burlingame seconded a motion to recommend approval of Planning Case 26-006 for Zoning Code Amendments Ordinance 2026-0XX 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 with the amendments as discussed. The motion carried unanimously (7-0). UNFINISHED AND NEW BUSINESS A. Election of Vice Chair Community Development Director Reilly requested the Planning Commission elect a Vice Chair for 2026. Commissioner Erler moved and Chair Collins seconded a motion to elect Ben Lindau as Vice Chair of the Planning Commission for 2026. The motion carried unanimously (7-0). REPORTS A. Report from the City Council Councilmember Weber provided the Commission with an update from the City Council. He explained the Council passed a moratorium on detention facilities in the City, approved the sign standard adjustments for the fire station and approved the site plan review and variances for Scale Model Supply. He reported the Norwegian Foot March would be held on Saturday, April 18 at the Red Bull facility. B. Planning Commission Comments and Requests Commissioner Bjorklund supported the City having a simple definition in place for ADU’s. He indicated he would also like to see the Commission doing more when it comes to make recommendations to the City Council when it comes to housing. Commissioner Erler understood the inclusionary housing policy was the first step for the City and he was proud the City was moving in this direction. ADJOURN Commissioner Burlingame moved, seconded by Commissioner Erler, to adjourn the April 8, 2026, Planning Commission Meeting at 9:56 p.m. The motion carried unanimously (7-0).