3.4 Supporting Retention of City Land Use and Zoning Authorization
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Planning City Planner Licht 25 March 2024
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty 3.4 – Missing Middle Bill
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
X Has proactively expanded infrastructure to responsibly provide core services.
X 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.
X Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends the City Council adopt a resolution opposing legislation being considered regarding City land use
and zoning authority.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The League of Minnesota Cities is alerting member cities on bills under consideration at the State Legislature as HF 4009
(Kraft)/SF 3964 (Mitchell), which has become known as the Missing Middle Housing Bill. The provisions of the proposed
legislation, summarized in the attached LMC materials, would have the effect of limiting local land use and zoning
controls by mandating allowed densities and uses, restricting the ability to establish performance standards, and
eliminate opportunities for public notice and involvement.
Senator Eric Lucero has been identified a sponsor of the bill introduced in the Senate. A letter to Sen. Lucero was signed
by Mayor Stockamp and sent to him outlining the City’s concerning the Missing Middle legislation. A copy of the letter is
attached.
The LMC is requesting that cities take additional action to oppose the proposed legislation by adopting a resolution
calling for continued support of local authority in land use and zoning decision making.
SUPPORTING DOCUMENTS ATTACHED:
• Mayor Stockamp letter dated 13 March 2024
• LMC City Issue Fact Sheet: Zoning and Land Use
• LMC Consequences Cities and Residents Face from Housing Legislation
• Resolution 2024-27
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt 2024-27 supporting retention of city land use and zoning authority.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
13 March 2024
Senator Eric Lucero
District 30
Minnesota Senate Office Building, Room 2413
St. Paul, MN 55155
To the Honorable Senator Lucero:
On behalf of the City of Otsego, I am reaching out to share our City’s concerns regarding HF 4009
(Kraft)/SF 3964 (Mitchell), which has become known as the Missing Middle Housing Bill. We
understand that you are a sponsor of the bill introduced in the Senate and are disappointed that you did
not acknowledge as much during your visit to the City Council meeting on 28 February 2024 to provide
an update on legislative matters.
Development of housing in Minnesota is a partnership involving willing land sellers, home builders
influenced by market demand and economic conditions, and cities that provide infrastructure and
services to meet the needs of existing and future residents. As you know, Otsego has been a leader in
issuing building permits for new housing for over two decades.
The proposed Missing Middle Housing Bill that you are sponsoring is deficient in our City’s view not only
on policy, but also in how it could be practically implemented if passed by the Legislature and signed by
the Governor. Our concerns are as follows:
Erosion of Local Authority. 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.
The proposed Missing Middle Housing Bill undermines the essential role of cities in addressing
the housing needs of their communities. Replacing existing city zoning and land use authority
with a rigid statewide framework eliminates cities' ability to respond to local needs and
conditions and fails to recognize significant differences between developing and fully developed
cities.
Honorable Senator Eric Lucero
13 March 2024
Page 2
Services and Infrastructure. The focus of a city’s comprehensive plan is focused on land use and
housing. But for the document to be effective, the comprehensive plan must relate the land
uses being planned to systems needed to support those land uses including sewer and water
utilities, stormwater management, parks and recreation, and provision of services to protect
public health safety and welfare including police and fire protection services. The proposed
Missing Middle Housing Bill will force cities to allow additional density without consideration as
to potential impacts of a city’s infrastructure capacity or service abilities, including how re-sizing
infrastructure or expanding services will be funded.
Public Participation and Transparency. A strategic goal of the City is to be a strong organization
that is committed to leading the community through innovative communication to effectively
serve residents, property owners, businesses, and developers by encouraging public
participation and transparency throughout the development review and decision-making
process. Minnesota Statutes Chapter 462 currently requires development applications involving
comprehensive plan amendments, zoning ordinance or zoning map amendments, conditional
use permits, interim use permits, and variances to include a public hearing to consider such
applications with published and mailed notice to surrounding property owners.
The proposed Missing Middle Housing Bill diminishes the embedded transparency regarding
decision-making and eliminates opportunities for public input. This proposal mandates new
administrative only review requirements that reduce residents’ opportunities for awareness of
potential developments occurring within the City essentially eliminates the ability to provide
feedback on the impacts of proposed projects during public hearings. Furthermore, conditional
use permit and interim use permit approvals are intended to allow cities a degree of discretion
in approving specific developments at specific locations such that unique characteristics of an
area can be addressed, potential negative impacts of a new development mitigated, and land
use compatibility maintained.
Implementation. In addition to the Missing Middle Housing Bill being deficient regarding policy
and preemptive in nature, numerous provisions are also would pose serious practical challenges,
including:
Minimum density levels on all residential lots allowed by right at two units, regardless of
size, infrastructure capacity, or other standards such as stormwater management, and
police and fire protection capabilities. If certain conditions are met, eight units are
allowed in second-class cities such as Otsego.
Requiring cities to accept Accessory Dwelling Units (ADUs) on all residential lots,
regardless of size, and allowing property owners to subdivide lots by right.
Unreasonable minimum lot size requirements to support mandated densities.
Allowing multifamily buildings up to 150 feet tall on any lot in a commercial zoning
district.
Honorable Senator Eric Lucero
13 March 2024
Page 3
Prohibiting design standards for residential development and eliminating minimum
square footage and floor area ratio requirements.
Limiting minimum parking requirements, which are based on engineering studies, while
requiring higher density could result in developers underbuilding parking resulting in
spillover onto city streets that were not designed to accommodate dense on street
parking.
Contradicting provisions including references that missing middle housing must be
“compatible in scale, form, and character” with other housing while also broadly
eliminating the ability for cities to impose those standards with the preemption of
architectural design standards, which is overly broad and subjective likely resulting in
legal challenges.
The history and consistency of residential development in Otsego reflects the success of the City’s plans,
regulations, and process resulting in development aligned with priorities of the community and the
business needs of residential developers and home builders. Between 2019 and 2024, there have been
1,922 new homes constructed in Otsego, including 428 townhomes and multiple family dwelling units
(22 percent) or an average of 384 new homes per year for the last five years.
The goals 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 to which the City provides necessary infrastructure and services.
These goals allow for the success of the partnership described above involving landowners, developers,
and cities to provide housing for people of all incomes and ages. We appreciate your consideration of
these concerns and look forward to continuing to work with you and other legislators to identify locally
based decision-making and practical approaches that support cities’ efforts to address local housing
needs.
Your continued dedication, transparency, and service on behalf of the City of Otsego is, as always,
greatly appreciated.
Sincerely,
CITY OF OTSEGO
Jessica L. Stockamp
Mayor
CITY ISSUE FACT SHEET: ZONING AND LAND USE
Protecting Cities’ Zoning and
Land Use Authority
Legislation has been introduced that would
undermine the abilities of city officials and their
residents to make their own decisions about zoning
and land use. The “Missing Middle Housing” bill, HF
4009, SF 3964, and SF 3980, increases housing
density and take away cities’ rights to make
zoning and land use decisions that best fit their
communities’ needs.
WHAT’S IN THE BILL:
• Forces administrative approvals of projects that meet
standards and prohibits public input in the approval
process.
• Limits minimum lot size requirements to no greater
than 2,500 square feet for first class cities and 4,000
square feet for all other cities except for cities with
populations less than 10,000.
• Requires all cities to accept Accessory Dwelling Units
on all residential lots regardless of size and allows
property owners to subdivide their lots by right.
• Sets a base level for density allowed on any
residential lot by right—regardless of size—at 2 units
statewide and 4 units in first class cities.
2024
March 4, 2024
Potential Consequences
of “Missing Middle
Housing” Bill:
• No financial support is provided
for infrastructure upgrades/
expansions needed for increased
density, shifting the costs on
taxpayers.
• Residents would no longer be
able to voice concerns regarding
developments at public
hearings.
• Cities may need to buy
new equipment and resize
infrastructure if new residential
buildings are taller than what
their existing infrastructure can
handle.
• Solar panels on homes and
businesses may be blocked by
buildings as tall as 150 feet.
CITY ISSUE FACT SHEET
Protecting Cities’ Zoning and
Land Use Authority (Continued)
FOR MORE
INFORMATION:
Daniel Lightfoot
LMC Intergovernmental
Relations Representative
(651) 281-1295
dlightfoot@lmc.org
lmc.org
• State framework around zoning and land
use must allow for locally led reforms.
• Cities that have put in years of work to
address zoning at the local level should not
have to replace their locally led efforts with
a state mandated framework.
• The state must provide tools and resources
for cities to make progress toward housing
targets based on real numbers and should
not penalize cities for market forces
outside their control.
• Framework should hold the developer
community accountable to actually build
units that are affordable.
• Projects for additional density must
consider infrastructure capacity and
provide cities with the ability to finance
the infrastructure necessary to support new
residential development without relying on
the property tax base.
OUR ASKS/SOLUTIONS:
WHAT’S IN THE BILL (CONTINUED):
• Prohibits off-street parking from being required close to
major transit stops and limits off-street parking minimum
requirements to 1 spot per unit in other areas.
• Allows multi-family dwellings to be constructed in any
zoning district that allows commercial activity as tall as the
tallest commercial or residential structure within ¼ mile
radius of the parcel up to 150 feet in height or the local
height restriction, whichever is higher.
• Broadly prohibits design standards for residential
development and eliminates minimum square footage and
floor area ratio requirements.
Consequences Cities and
Residents Face from
Housing Legislation
Minnesotans should be aware of the potential consequences of housing legislation being
pushed forward at the State Legislature. The legislation, known as the Missing Middle
Housing bill, would take away cities’ rights to make zoning and land use decisions that
best fit their locally-identified needs. The legislation would also silence residents who have
concerns over new developments being built in their neighborhoods.
Lawmakers may believe they know what is best for all Minnesota cities, but they have
overlooked the consequences our cities and residents will be forced to deal with if the
Missing Middle housing legislation becomes law.
INSUFFICIENT INFRASTRUCTURE
The legislation would allow developers to build 6-10 types of “middle housing” (duplexes,
triplexes, fourplexes, fiveplexes, sixplexes, townhouses, stacked flats, courtyard apartments,
and cottage housing) on any residential lot. Most cities’ infrastructure including water and
sewer systems does not currently support adding high-density buildings to residential lots.
Consequence
Cities would need to upgrade and/or expand their
water and sewer infrastructure. The state does
not plan to provide financial support for these
infrastructure requirements, which means cities
may have to turn to taxpayers to pay for necessary
infrastructure upgrades.
Oppose the Missing Middle Housing Bill
Consequences (Continued)
LIMITED COMMUNITY INPUT
This legislation would require cities to adopt an “administrative review process” that prohibits
public hearings in most cases unless the proposed development impacts a lot located in a
historic district. This required review process means city leaders would be forced to make
decisions about new developments without hearing from impacted residents.
MAKE YOUR VOICE HEARD
Contact your legislators to ask
them to oppose the Missing
Middle Housing bill.
lmc.org
March 6, 2024
Consequence
Residents would no longer be able to voice their
concerns regarding new developments that affect
their property and neighborhood during public
comment periods of city council or other public
hearings.
PUBLIC SAFETY AND ENVIRONMENTAL IMPACTS
Cities would have to allow smaller homes to be built on single-family
lots, regardless of lot size. They would also have to allow 2-10 units on
lots as small as 2,500 square feet and allow multi-family dwellings to
be constructed in any commercial area. The dwellings could be as tall
as the tallest commercial or residential structure within ¼ mile radius
up to 150 feet in height or the local height restriction, whichever is
higher.
Consequences
• Emergency medical services and fire
departments’ access to homes will be restricted
if multiple units are on a lot that was originally
designed for one home without adequate
spacing, setbacks, or access to dwelling units.
• Many cities lack the equipment and infrastructure
to support tall multifamily developments in areas
that were not planned for building of that size
and scale. These cities would have to buy new
equipment to assist residents in an up to 150-
foot building—adding another major expense to
fire departments that are already struggling to
afford up-to-date equipment.
• Solar panels on homes and businesses may be
blocked by taller neighboring buildings.
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2024-27
SUPPORTING RETENTION OF CITY LAND USE AND ZONING AUTHORITY
WHEREAS, decisions about local land use and zoning that best fit community needs are best left to City residents and
officials; and
WHEREAS, cities use land use and zoning regulations to balance property compatibility, plan for community growth,
dedicate space and capacity for public infrastructure to support development (streets, parks and trails, transportation,
sewer, stormwater, water, etc.), mitigate flooding and erosion, and preserve natural resources among others; and
WHEREAS, the Minnesota State Legislature, in an attempt to address housing availability and affordability challenges, is
considering measures that would preempt city authority to regulate land use and zoning and assign that authority to State
government; and
WHEREAS, passage of those measures would inadequately address housing availability and affordability challenges; and
WHEREAS, a rigid framework for land use and zoning mandated by the State makes little sense and cities require flexibility
to address their own unique circumstances; and
WHEREAS, provisions of the proposed State measures would place the fiscal burden for infrastructure cost of new
residential development on the shoulders of existing homeowners and renters in our local communities; and
WHEREAS, building of multiple housing units on a single residential lot with inadequate spacing, as allowed in the
proposed zoning preemption measures, could result in service delivery problems like limiting emergency medical services
and fire departments’ access to city neighborhoods; and
WHEREAS, provisions would also silence local residents from their concerns regarding proposed developments during
public comment periods of City Council and Planning Commission meetings; and
WHEREAS, the City of Otsego has already invested greatly in its commitment to leading the community through innovative
communication to address zoning issues, and continue to do so, with the help of community engagement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. The City of Otsego opposes state proposals that seek to preempt local zoning and land use decision-making when
it comes to residential development.
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2. The City of Otsego supports constructive policy alternatives to incentivize and bolster city efforts for addressing
housing challenges.
3. The City of Otsego advocates for a city-state partnership to consider reforms that are proven to address housing
availability and affordability and that ensure efforts can be locally led and shaped.
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ADOPTED by the Otsego City Council this 25th day of March, 2024.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk