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MEMORANDUM <br />To:Saint Anthony Village City Council <br />From:Stephen Grittman, City Planner <br />Date:April 14, 2026 <br />Request: Housing Topics <br />BACKGROUND <br />The City Council adopted three specific tasks as a part of its Housing Policy discussions during the annual <br />goal-setting process earlier this year. These were: <br />Consideration of codes related to allowing Accessory Dwelling Units (ADUs). <br />Consideration of policies related to the use of Tax Increment Financing to assist housing <br />projects. <br />Consideration of the study of “tear-down” ordinances as an aspect of housing affordability and <br />other neighborhood livability impacts. <br />Accessory Dwelling Units <br />Accessory Dwelling Units (ADUs) are allowed in various municipalities throughout the Twin Cities, and <br />prohibited by many others. Proponents support ADUs for the following reasons: <br />1.Options for increased property values. <br />2.Creation of potential affordable housing options. <br />3.Opportunities for housing for family members. <br />4.Rental income for the primary property owner. <br />Concerns to be aware of include these: <br />1.Additional density and traffic in single family neighborhoods. <br />2.Vehicle parking and other site logistics on smaller lots. <br />3.Capacity of utility services (sanitary sewer, water, etc.) in areas planned for lower densities. <br />4.Capacity of park spaces, combined with potential loss of private open/rec space on the lot. <br />In St. Anthony, one of the primary limiting factors is likely to be impervious surface on residential <br />parcels, which is limited to 40% coverage on parcels below 9,000 square feet, and 35% on larger parcels. <br />For many St. Anthony lots, it would be unlikely that impervious limitations would accommodate the <br />additional surface coverage. Building over existing structures (such as the principal house or garage) is <br />the more likely option. <br />In several recent news articles it has been noted that there are relatively few ADUs built in the <br />communities that allow them, due largely to the cost of construction. Those costs are estimated at <br />between $200 and $400 per square foot. Conversions of existing garages are the least expensive, <br />although replacement garage space would have to be considered. <br />One other consideration for Council policy discussion would be how ADUs would fit into the City’s <br />regulation of rental single family housing. <br />9