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Cottage Grove residents, many seniors, urge council to limit rent increases
Summary
Multiple Cottage Grove residents told the City Council during open forum on May 21 that recent rent hikes — some as high as about 7.8–9% — are forcing seniors to make difficult choices; speakers urged a city ordinance capping increases, while city and outside speakers noted state limits on municipal rent control.
Several Cottage Grove residents urged the City Council on May 21 to draft an ordinance to limit rent increases after a string of hikes at local rental communities that speakers said fall heavily on seniors.
Residents at The Cottages and at Legends reported increases they described as steep and recurring. “We have seen our rent increase up to 7.85,” a resident identified in the record as Cheryl said during the open forum. Sharon Tashner said her rent rose “9 point some percent.” Julie O’Brien and Rita Isker described repeated increases and property maintenance problems they say accompany higher rents.
The speakers said many residents are on Social Security or fixed incomes and cited difficulties covering medicine and food when rent rises. “If rents keep going up, you’re going to have a tremendous amount of homeless people and seniors living in their cars,” Marjorie Williams said, describing the pressure on people with fixed incomes.
City and outside participants told the audience the city’s authority to act is limited. Tony Khambatta, who identified himself as chair of the Government Affairs Committee for the St. Paul Association of Realtors during remarks, cited a state law and procedural constraints: “Minnesota statute 479.99 subsection 2, states that statutory or, charter city, which is Cottage Grove is a statutory city, does not have the authority to enact rent control without, basically a referendum vote in a major election,” he said. He also said state statute requires at least 60 days’ notice for rent increases above 10 percent.
Council members said staff will gather information and provide a formal response. Mayor Myron Bailey told the room staff will take residents’ comments and return recommendations: “We will get a response back to you both from our staff and our, obviously legally, so we can tell you kind of what the big step is or what part you can play, should you decide to do that, in rent controls.”
Speakers and council members discussed alternative approaches that do not require immediate ordinance changes, including the city’s leverage when it has a financial interest in a property, or coordination with the Housing and Redevelopment Authority (HRA). Gary Spooner, who has advocated on the issue in the region, described repeated attempts at the Legislature and the use of alternative metrics to calculate allowable rent increases.
No motion or ordinance was introduced at the meeting; council members said staff and city attorneys will prepare a response and follow-up. The council plans to provide information to the residents on what actions the city can legally take and any next steps for petitioning state changes or pursuing ballot measures.
Residents asked the council to consider caps linked to Social Security COLA and to review how area median income (AMI) calculations affect rent, a point Mayor Bailey noted: “AMI is based off of the county. And so if you’ve got the majority of the county which has a high AMI, that is having effect on, the rents that are happening at Cottage Grove.”
The council closed open forum after collecting comments and indicated staff would respond in writing and at a future meeting.
