4646 Dakota Street SE | Prior Lake, MN 55372 952.447.9800 | www.priorlakemn.gov March 8, 2021 To: The Honorable Senators Draheim, Port and Pratt Representatives Alright, Hanson, Mortensen and Pfarr Re: Housing Preemption Bills – SF 913, SF 914, and SF 915 Honorable Scott County Legislators: The City of Prior Lake is writing this letter to express our concerns regarding Housing Preemption Bills SF 913, SF 914, and SF 915 which were introduced for discussion on February 11, 2021. The City has reviewed the draft language included in these bills and has concerns that they would circumvent the City’s authority to make local decisions that reflect the needs of our community. Related to the proposed bills, our concerns are as follows: SF 913. The proposed language in SF913 has the potential to threaten the health, welfare, and safety of local communities. The City is concerned largely with the allowance for property owners to contract with private building officials because they could serve the interests of the builder and not necessarily the future occupants, customers, or owners. Further, having multiple private building officials conducting inspections throughout the City could result in inspections being conducted inconsistently. SF 914. Minnesota Statutes, section 462.358, subdivision 2c requires an essential nexus between the fees or dedication imposed by a municipality. Capping the cash fee for parks at five percent limits a municipality’s ability to collect fees proportionate to the need created by the proposed subdivision or development. Such a limit could place a much larger burden on existing taxpayers who are not creating the need for additional parks. Regarding record maintenance, the proposed language is unnecessary as cities are already required to adopt management and accounting procedures to ensure fees are maintained and used only for the purpose for which they are collected as provided by Minnesota Statutes, section 462.353, subdivision 4, paragraph (b). SF 915. The proposed language adds building permits to the 60-day rule in Minnesota Statutes section 15.99. The City is unaware of any issues related to building permit delays and questions the necessity of such an addition. Further, the proposed language would result in larger burdens on the applicant in cases where the City is not responsible for a delay in issuance. The proposed language in Minnesota Statutes, section 462.352, subdivision 5, encourages municipalities to enact public policy to facilitate the development of unsubsidized affordable housing. The City agrees that local efforts should be made to support unsubsidized affordable housing. However, laws by nature are prescriptive and require that a specific entity comply. “Encouraging” cities to enact policy is not enforceable and the City questions its appropriateness in Statute. The proposed language also limits regulations on residential development. The City agrees that a municipality shall not require planned unit development (PUD) agreements for residential developments that comply with existing city zoning ordinances and subdivision regulation. However, in general the proposed language related to PUD’s could reduce a city’s ability to grant flexibilities to zoning requirements as sought by developers through a PUD. The proposed language related to garages circumvents a cities authority for city planning, land use, and zoning as provided in Minnesota Statutes, chapter 462, and limits the ability of city officials to make decisions that reflect the needs of the local community. Related to the topic of unsubsidized affordable housing, please note that the City of Prior Lake has proactively adopted and continues to consider official controls that support affordable housing based on our local community values and needs. For example, the City recently reduced our Trunk Water fee for new development from $7,640 to $3,840 per acre. This was accomplished due to the City negotiating the construction of a joint water treatment plant with the Shakopee Mdewakanton Sioux Community rather than building a standalone water treatment plan. Those savings were immediately passed on to developers through the reduction in our fee. As discussions continue related to these bills, the City of Prior Lake respectfully asks that you consider the implications for a city’s zoning, planning, health, welfare, and safety. Thank you for your consideration of these concerns. Please contact us with any questions. On behalf of the Prior Lake City Council Kirt Briggs Mayor, City of Prior Lake Cc: Governor Tim Walz Senator Duckworth, Co-author Senator Koran, Co-author Senate Majority Leader Paul Gazelka Senate Minority Leader Susan Kent House Majority Leader Ryan Winkler House Minority Leader Kurt Daudt Senator Rarick, Labor and Industry Policy Committee Chair Andy Eilers, Labor and Industry Policy Committee Administrator Senator Jasinski, Local Government Policy Committee Chair David Raisanen, Local Government Policy Committee Administrator Joel Hanson, Housing Finance and Policy Committee Administrator Regional Council of Mayors League of Minnesota Cities Metro Cities Association of Minnesota Counties Municipal Legislative Commission City Mayors and Administrators of Scott County 2 .