Item Coversheet

*4.A.8.


Shakopee City Council
February 15, 2022


FROM:William H. Reynolds, City Administrator
TO:Mayor and Council Members
Subject:
Support of Housing and Local Decision Making Authority
Policy/Action Requested:
Adopt Resolution #R 2022-015 which Supports Housing and Local Decision Making Authority
Recommendation:
Approval.
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. 

Budget Impact:
None.
ATTACHMENTS:
Description
Res #2022-015 Supporting Local Control over Housing Issues
2022 Cost of New Shakopee Home