The Lake Elmo Planning Commission voted May 12 to recommend the City Council approve a comprehensive plan amendment and the preliminary plat and planned-unit development for MI Homes’ Inwood townhome project, with staff-recommended conditions.

City planner Nathan (last name not specified in the record) told the commission staff had reviewed a revised plan set submitted after the item was tabled at the April 14 meeting and was “comfortable at this point recommending approval of the project … with conditions.” The recommendation covers three applications: a comprehensive plan amendment, a preliminary plat and a PUD that would allow private streets and other flexibilities for higher-density residential development on nearly 20 acres across four parcels in the Inwood area.

Staff and the developer described the principal revisions since the April hearing. MI Homes’ representative Emily Becker said the redesign includes a 28-foot-wide internal street through the center of the townhome area to provide better connectivity, removal of several stub drives and reorientation/augmentation of a communal open space. Becker said MI Homes retained rear-loaded garages and added landscaping and a landscaped entrance intended to echo the adjacent Inwood single-family area.

Why it matters: The applications would consolidate three different proposed future land-use categories into a single High Density Residential designation with a proposed maximum of 15 housing units per acre. The project would add attached townhomes and a multi-family building on a site the city earlier reviewed in a 2014 master plan. Approval would allow MI Homes to plat individual owner-occupied townhouse lots with common open space maintained by an HOA and to construct private streets rather than public streets in parts of the project.

Key staff findings and outstanding items

- Design and materials: Staff said the project generally meets PUD minimum criteria for size, open space and a street grid, but noted the proposed use of vinyl siding conflicts with the city’s Design Standards Manual, which lists vinyl as a prohibited primary material. Nathan said staff were not supportive of deviating from that final requirement, and that the city planning commission or council could make that policy call. Becker told the commission MI Homes proposes fiber-cement (Hardie) siding on board-and-batten areas but wants to keep vinyl on other façade areas because of cost; she said vinyl would represent about 42.6% of the total façade area by the developer’s calculation.

- Parking and circulation: Staff recommended removing several proposed 90-degree parking stalls that create circulation conflicts and replacing them with parallel parking bump-outs. Staff also urged improved sidewalk connectivity at the southeast and southwest corners of the townhome area, if achievable without removing trees.

- Trees and landscaping: The revised plan meets overall planting counts and provides additional buffering along the southern boundary adjacent to the Bremer Financial parking area, but tree spacing requirements (an overstory tree every 50 feet along a boulevard) remain difficult to meet in areas with many private driveways. Nathan said the developer intends to use lower-rooting landscape plantings where overstory trees cannot be accommodated.

- Stormwater and impervious surface: Staff noted the attached townhome portion is roughly 52% impervious overall, with some individual lots at 80–84% imperviousness due to small lot areas. Staff said stormwater design review is ongoing and that developers are required to submit a stormwater report; the city does not automatically give credit for impervious area devoted to stormwater ponds.

- Traffic and engineering review: MI Homes presented a traffic analysis it said shows lower trip generation than the 2014 study. Becker said the developer’s traffic consultant does not believe turn lanes are warranted and questioned a city-engineering comment that turn lanes might be needed where more than 35 units access a roadway. Staff said an engineering memo and review comments are attached to the staff report and that the project remains under engineering review; staff recommended a conditional approval requiring the plans be revised to address engineering review memos.

- Public comments and health advisory: Commissioners noted public comments from the previous hearing focusing on traffic, crossing opportunities along Fifth Street North, stormwater reuse and building height. Commissioner (name not specified) read aloud that Washington County sent a March 7, 2025 letter stating the area lies in a Drinking Water Supply Management Area (DWSMA) and is a known area of PFOS contamination and recommending that best-management practices outlined by the Department of Health and the Minnesota Pollution Control Agency be implemented to protect public health. Staff said those comments were included in the project packet and did not appear material to the land-use determination but remain important.

The commission’s decision and next steps

The commission voted to recommend approval of the comprehensive plan amendment with the findings proposed by staff (motion moved by Commissioner Char; seconded by Commissioner Hammond). The commission then voted to recommend city council approval of the preliminary plat and PUD for the Inwood townhome development with the 15 conditions discussed by staff; the motion and second were recorded in the meeting minutes and the commission chair announced the motion passed. Staff said the application remains under engineering review and must clear outstanding review memos before it proceeds to council; staff also noted a statutory review deadline of June 14, 2025.

What remains unresolved

Commissioners and several public speakers emphasized unresolved quality and safety questions: whether siding materials should be changed from vinyl to fiber-cement (Hardie), where guest/visitor parking will be located and how to address pedestrian safety and sidewalks without removing trees. Staff recommended final sidewalk connectivity, parking layout revisions and compliance with engineering memos as conditions of approval. The developer said switching all facades to fiber-cement would add roughly $9,000 per end unit and increase HOA maintenance exposure; several commissioners and residents urged higher-quality exterior materials.

The planning commission’s recommendation moves the applications to City Council for final decision after the developer addresses outstanding engineering and design conditions and the council receives the formal staff report, conditions and any additional submissions.

Ending note: At the May 12 meeting the commission approved the recommendations to forward the comprehensive plan amendment and the preliminary plat/PUD to the City Council; staff said the project will be scheduled for council consideration before the June 14 statutory deadline if engineering review is completed.