8.1 Housing and Local Decision Making Authority
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Planning City Planner Licht 14 March 2022
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty
City Attorney Kendall
8.1 – Housing and Local
Decision Making Authority
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
X Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends adoption of a resolution advocating for local decision-making regarding housing
policy and zoning regulation.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
Minnesota home builders, through their business association Housing First Minnesota, are seeking through
proposed legislation to restrict a city’s ability to define and regulate residential development through
zoning ordinances.
Bills being introduced at the Minnesota legislature for the 2021-2022 biennium would override cities from
establishing local requirements for performance standards for subdivisions and dwelling units. The
proposed bills would also impair the use of planned unit development as a tool for both the city and
developers/builders to deliver projects that achieve the housing goals of the city and respond to market
demands outside the framework of conventional zoning.
The authors of the proposed bills and Housing First Minnesota claim incorrectly that these fundamental
regulatory functions of local government are prohibiting the building of more affordable housing stock,
when complex market factors involving land values, labor costs, and materials and fixtures are creating the
increased housing costs we see today. The City is actively engaged with developers and home builders to
adjust to the changes occurring in the marketplace while providing for neighborhoods consistent with the
character of Otsego.
The most recent residential subdivisions approved in Otsego have been developed within the provisions of
the R-5, Single and Two Family Residential District. This zoning district allows for development of single
family lots with a minimum area of 9,000 square feet and two family dwellings on lots within a minimum
area of 15,000 square feet (7,500 square feet per dwelling unit). Furthermore, the City has processed
subdivision applications within the R-5 District concurrent with a conditional use permit application to
allow for a reduction of both minimum lot area and minimum lot width requirements to encourage a
broader range of housing options within individual developments.
Similarly, the City has provided for development of townhouse at densities of up to nine dwelling units per
acre and multiple family dwellings at densities greater than 40 dwelling units per acre. Townhouse and
multiple family dwellings provide housing opportunities for those persons just entering the work force that
either do not desire, need, or have resources for a single family dwelling; for those in the labor force whose
income levels do not allow for acquisition of a single family dwelling; and those empty nest or senior
households transitioning away from single family dwellings due to preference, income, or reasons to do
with physical limitations. Townhouse and multiple family dwellings also provide market support for
existing and planned retail and service businesses and a source of local labor supply for industry within the
community.
The goal of the Otsego Comprehensive Plan and the City’s development regulations is to guide
development of a cohesive land use pattern that ensures compatibility and functional relationships among
activities within the community. Decisions regarding desired community character, goals for future land
use development, and policies and regulations for development to bring about those goals are best defined
at the local level by the City Council. The City Council, elected by the residents of the City, analyze
individual development proposals from a physical, economic, and social perspective within the context of
the entire community to determine appropriate uses. The City Council is advised in this process by
residents, businesses, a Planning Commission comprised of local residents, a professional City staff, as well
as developers and home builders.
City staff has drafted a resolution for consideration by the City Council to support the efforts of the League
of Minnesota Cities to advocate during the current legislative session for maintaining local control for
decisions regarding housing policy and regulation of construction.
SUPPORTING DOCUMENTS ATTACHED:
▪ Resolution 2022-30
POSSIBLE MOTION
\PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2022-30 regarding housing and local decision making.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2022-30
HOUSING AND LOCAL DECISION MAKING
WHEREAS, local elected decision-makers are in the best position to determine the health, safety, and
welfare regulations that best serve the unique needs of their constituents; and
WHEREAS, cities across the state are keenly aware of the distinct housing challenges facing their
communities and they target those local housing challenges with available tools; and
WHEREAS, it is a goal of the Otsego Comprehensive Plan to develop a range of housing types within the
community to provide opportunities for persons of all ages and income levels; and
WHEREAS, zoning regulation is an important planning tool that benefits communities economically and
socially, improves health and wellness, and helps conserve the environment; and
WHEREAS, local zoning regulation allows communities to plan the use of land transparently, involving
residents through public engagement; and
WHEREAS, the Otsego Zoning Ordinance allows for development of single-family dwellings at a density
of up to five units per acre, townhouse dwellings at up to nine dwelling units per acre, and multiple
family dwellings at more than 40 dwelling units per acre.
WHEREAS, multiple bills restricting local decision-making related to housing have been introduced in the
Minnesota Legislature for the 2021-2022 biennium.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA THAT:
1. The City of Otsego supports housing policy that advances solutions to support full housing
spectrum solutions, local innovation, incentives, and community-specific solutions throughout
Minnesota instead of State imposed mandates.
2. The City of Otsego supports local decision-making authority and opposes legislation that
restricts the ability for local elected officials to respond to the needs of their communities.
2
ADOPTED by the Otsego City Council this 14th day of March, 2022.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk