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<br />minnesota.uli.org 19 <br />Over the next 2-5 years, the panel recommends the city view this site as a long-term investment, focusing on <br />activation and programming in this parcel, along with development of a Station Area Plan. The Metropolitan <br />Council is currently providing funding for station area plans. In the long term, form-based zoning or design <br />criteria for the site along with an RFP informed by the results of the testing could be used to meet city priorities <br />for the area. <br />Why not housing? <br />Though several stakeholders suggested housing for this plot, the <br />panel determined that housing is not financially viable. Today’s <br />market dynamics make building new housing difficult. The below <br />cost analysis shows that townhome projects are currently viable, but <br />apartments are not. This site is not conducive to townhomes, though <br />another site considered in this TAP could be. <br />In developing housing, a critical mass of units is necessary because <br />of costs associated with infrastructure. This site is too small to <br />support enough housing to offset the fixed expenses. An average monthly rent of $2.91 would be required for <br />viability for market-rate housing, above the current market rents. Townhomes and Income Restricted Units <br />funded by bonds are the most viable housing options. <br /> <br />Based on this information, the panel believes the best use of this site would be creating a strong, commercial <br />barbell node and enhancing the pedestrian connection between the site, Rice Street, and Little Canada Road. <br /> <br /> <br />Affordable vs. Market Rate <br />Housing <br />Little Canada’s median household <br />income is $63,000 (Source: MN <br />DEED, 2020). Housing positioned <br />as affordable is the market rate for <br />this community.