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June 9, 2026 St. Anthony Council Work Session - 2 requesting assistance. She noted that the Public Finance Policy contains statutory and local requirements. Municipal Advisor Kvilvang reviewed that the statutory requirements are a part of the Business Subsidy Policy. This applies to any commercial business, not residential. Municipal Advisor Kvilvang highlighted statutory additions to the policy, which included a minimum of one full-time equivalent job paying at least 150 percent of the state minimum wage. She noted that this is a floor, and if more jobs are desired, a higher amount can be added to the final agreement. Municipal Advisor Kvilvang recognized the priority for affordable housing in St. Anthony. She highlighted that Staff added several items to address this concern, including asking developers to include affordable units at 60 percent of the area median income in their Section Two multi-family units, under Objectives for Providing Public Assistance. She commented that this, too, is somewhat adjustable, but provides a starting point for discussion. The second place where affordable housing is emphasized is in Section Three under the Public Financing Principles. Municipal Advisor Kvilvang overviewed that anyone requesting assistance must file a Declaration of Restrictive Covenants for 26 years. She noted that this is very standard and helps new buyers understand affordability requirements. Councilmember Jenson provided an example of a developer who sells a property after ten years, which is under these requirements. He asked if they would have to comply with the affordability requirements for sixteen years. Municipal Advisor Kvilvang confirmed that it is true. Councilmember Jenson asked if owners are required to extend this. Municipal Advisor Kvilvang stated they are not. Councilmember Jenson questioned whether this is because the property will lose value and become naturally more affordable. Municipal Advisor Kvilvang corrected this and noted that most developers are not receiving assistance for the full period. Councilmember Jenson asked who manages the controlled rent growth. Municipal Advisor Kvilvang stated that if a developer has a Declaration of Restrictive Covenants, they must annually submit reports to the City demonstrating compliance with affordability agreements. Councilmember Jenson expressed concern for a 55-plus community in Silver Lake Village. He noted that rent was rising faster than Social Security, and that many residents live off Social Security. He asked if there is protection for people in this situation. Municipal Advisor Kvilvang stated that there is not, and that these requirements are based on annually published HUD guidelines. Councilmember Jenson asked if there are ways they can implement protections for individuals in these circumstances through rent controls. Municipal Advisor Kvilvang stated that there is not, given that rent controls lead to a lack of development. She cited case studies from St. Paul to prove this. Councilmember Randle commented that he believed that when cities become involved in these issues, things get worse. He stated that he had never seen situations in which cities become involved in rent controls that benefit tenants. Municipal Advisor Kvilvang reminded the Council that this is not a rent control policy, only an expectation that developers include affordable units. Municipal Advisor Kvilvang continued by introducing Section Four-Point-Two, which stipulates that the City’s desire is 20 percent affordable housing at 50 percent of the area’s median income. She 4