Planner Lincoln presented a report on the need for missing middle housing, pointing out a significant decline in the production of such housing since the 1920s due to exclusionary zoning practices. The report underscored the stark disparity in affordable housing, noting that there are only 28 affordable rental options for every 100 households at or below the income threshold. The discussion included a review of low-density residential construction permits over the past seven years, revealing that only 11 accessory dwelling units and two-family dwellings were constructed, highlighting the need for more diverse housing options.

The commission considered several amendments to zoning regulations to facilitate the development of missing middle housing. These included removing the owner occupancy requirement for accessory dwelling units (ADUs), which mandates that property owners must reside in one of the units. The proposed changes would allow both the ADU and the principal structure to be rented, thereby increasing rental opportunities. Additionally, adjustments to the proportionate size requirement for ADUs were discussed, with suggestions to either remove the requirement or increase the size allowance, providing more flexibility.

Additionally, the commission explored the possibility of reducing rear yard setbacks and permitting accessory structures in front yards under certain conditions. The discussion extended to two-family dwellings in the R-3 zoning district, where they are currently prohibited. Proposals included allowing duplexes in this district and modifying garage requirements to facilitate conversions of existing properties into two-family units. These changes aim to alleviate design challenges and promote the development of more diverse housing types.

The commission also tackled the introduction of live-work units in neighborhood business districts. The proposed amendment seeks to allow business owners to integrate one or two residential units within their commercial properties, offering opportunities for supplemental income and enhanced work-life balance. The proposal would require a conditional use evaluation to address occupancy safety and parking considerations.

In addition to housing discussions, the commission reviewed park dedication fees in compliance with recent legal standards. Following a Minnesota Supreme Court case, the city must ensure a clear nexus between fees imposed on developers and the impact of their developments on the park system. The planning staff proposed a draft ordinance to clarify definitions and improve the process for multi-phased developments.

The meeting also included a proposal to amend the R3 density range, increasing the limit from eight to twelve units per acre. Concerns were raised about the potential impact on neighborhood character and the availability of suitable development areas. While some commissioners supported the idea of increased density to address housing shortages, others expressed apprehension about its broader implications.

To facilitate efficient planning processes, the commission adopted a revised meeting schedule for 2025, increasing the number of meetings to 28 to accommodate study items and avoid lengthy sessions. The schedule was adjusted to prevent conflicts with legal holidays and local events.