Discussion:
The League of Minnesota Cities has requested passage of a resolution supporting the authority of local elected officials to make land used decisions in their respective communities.
This is the latest effort to push back against housing industry groups who are attacking city land use tools - such as zoning and planned use developments. Builders want to build what they want and have decided to incorrectly claim that these basic regulatory functions are prohibiting the building of more affordable housing stock. In fact, the basis for housing costs include land, labor and materials - and the individual profit of builders.
This follows the initial attack by these advocates who falsely claimed that local housing fees were impacting the cost of housing and making it unaffordable. Factually, as outlined in the attachment on housing fees in Shakopee our fees account for approximately 2.5% of the cost of a new home ($13,662 out of $546,499.56). Wiping out city fees entirely will have no effect on the cost of the housing builders are choosing to build. If the builders did not pay these costs for inspections, permits, and plan reviews to ensure safe housing, these costs would have to be born by all city property tax payers.
The League of Minnesota Cities in conjunction with city leadership has drafted legislation that would advance real solutions to local housing challenges without imposing one-size-fits-all mandates on cities with diverse housing needs. They will continue to work to find real solutions including efforts to increase naturally occurring affordable housing.