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STAFF REPORT <br />DATE: 6/2/2026 <br />REGULAR <br />TO: Mayor and Councilmembers <br />FROM: Nathan Fuerst, AICP Consulting Planner <br />REVIEWED BY: Jason Stopa, Community Development Director <br /> Jack Griffin, Sr. Engineering Project Manager <br />AGENDA ITEM: OP-LDR Update <br />CORE STRATEGIES: <br />☒ Vibrant, inclusive, connected community <br />☒ Responsive, transparent, adaptive governance <br />☒ Managed Growth <br />☒ Efficient, reliable, innovative services <br />☐ Balanced Finances now and future <br />☒ Resilient Infrastructure <br />BACKGROUND: <br />In 2025, the City of Lake Elmo’s staff, Council, and Planning Commission discussed the creation of a new future <br />land use category, referred to as Open Space- Low Density Residential. The idea with this category was to allow <br />a new form of sewered development that would be similar in concept to Open Space Planned Unit <br />Developments, which are only available in non-sewered areas and primarily utilize community septic systems. <br />Over the past year, the City has performed preliminary work to identify if a water treatment plant can be <br />located on land northeast of the intersection of 10th St N., and Inwood Ave. N. The property owner has identified <br />that they may provide the City the needed land for the treatment plant in exchange for the ability to develop <br />their property as a sewered development. <br />To extend the MUSA and reguide the property with a new future land use category the City would need to <br />initiate a Comprehensive Plan Amendment. Staff are seeking to update the City Council on this project and to <br />receive guidance on the proposed future land use category which may be used adjacent to the water treatment <br />plant site or other future updates to the City’s Comprehensive Plan. <br />ISSUE BEFORE COUNCIL: <br />Should the City Council receive staff’s update and provide feedback on the proposed OP-LDR future land use <br />category. <br />PROPOSAL DETAILS/ANALYSIS: <br />As initially proposed with Highpointe Crossing, the OP-LDR (Open Space Low Density Residential) category would <br />be a new future land use category. The proposed future land use category is further reviewed below: <br />Purpose for new Future Land Use Category