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October 27,2022 PC Minutes Page 7 rezoning and changing land use designation in the Comprehensive Plan. Bear stated currently, the highest allowed density for residential use is 12 units per acre, but that may need to change considering market trends demanding higher density, as well as a changing appetite in the community. Stalland asks if a new ordinance would need to be created with a rezoning of the property. Bear states that in an area designated for mixed-use, rezoning to a PUD district is usually anticipated. However, in areas guided for commercial use, there is no zoning district to allow 20 units per acre. Stalland asks about the Metropolitan Council's guide for density within the City, and Bear responds that the city- wide goal is 3 units per acre, and that the city needs to demonstrate how that goal is achieved when allowing a 20 unit-per-acre project. Commissioner Petty asks for clarification on how the mixed-use area could be extended. Bear states that he's heard some discussion around apartments in the mixed-use area, and that depending on where the extended frontage road ends up in the final plans that some options to the south may be available. Chair Kleissler asks the commissioners how they feel about a jump in density. Bear states that this won't be the last time that an apartment project with this density will be requested, and that the Planning Commission may want to consider an approach to high-density apartments in the future. Stalland states that the market is heavily demanding more multifamily housing, and that the cost of utilities can't justify construction at 12 units per acre. Chair Kleissler asks if the applicant is requesting any further specific feedback. Stalland states that he wants to know if they're interested in higher density and if they can give him a preferred location. Commissioner Arcand states that his first choice for a location would be on Oneka Parkway but further away from CSAH 8. Chair Kleissler says that the location in the sketch plan is her least favorite, but not sure about a favorite. Commissioner Petty states that she is comfortable with a density of 20 units per acre, but that the Planning Commission and City need to be strategic about where it is placed. Commissioner Arcand states that he wants to consider how the "rural feel" of Hugo can preserved with high density. Bear replies that high-level questions like that start with the Comprehensive Plan, and that the discussion shouldn't be had without interest from the Planning Commission. Lentsch asks the commissioners what they have heard from the community in terms of what they would like to see in commercially-designated areas. Several commissioners respond that the number one item is restaurants, with some demand for smaller retail uses like drug stores.