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September 29, 2017 To Members of the St. Anthony Planning Commission, During your discussion on August 28, 2017 regarding the redevelopment of 2401 and 2501 Lowry, comments of mine that had been made to members of the St. Anthony Council earlier this year were invoked to support a recommendation to cap density at the site at 20 units per acre. It was also noted that in my remarks I acknowledged the potential for property value decline as density or affordability of housing increases. I would like to take this opportunity to clarify my views on both of these issues. First, as to the issue of density, it is true that higher densities are more common in cities than they are in suburban areas, and that existing infrastructure in larger cities is, in general, better able to accommodate higher residential densities. I have no record of my exact words the evening that I spoke to members of the Council, but the notes from which I spoke contain nothing about making a flat recommendation to cap densities at 20 units per acre, nor would I ever make a broad recommendation like that. The fact is that each development site has its own characteristics and each site should be analyzed on its own for what types of densities it can bear. I know of many very successful suburban housing developments that well exceed 40 units per acre. Second, as to the potential property value impacts of density or affordable housing, I do not believe that affordable housing drives down property values. My own research and the research of others, including research done in suburban communities of the Twin Cities, show that affordable housing can have positive effects on nearby values. The impact of any development on nearby values depends on a great number of things, including what was on the site before, the site and building design of the new development, and various characteristics of the development and its surrounding area. On the basis of my experience and research I would not have said to a group of policymakers that affordable housing drives down values. But, what I do often say is that neighbors are frequently concerned that affordable housing and higher densities will drive down their property values. This is why site and building design are important, as is management of the building over time. But good site and building design, and good management are important for all land uses, not just affordable housing. I apologize for the fact that my earlier remarks to the St. Anthony Council may well have been unclear on these issues. But, I hope that this message can clarify any misunderstandings that there might have been. Sincerely, Edward G. Goetz Professor, Urban and Regional Planning Director, Center for Urban and Regional Affairs