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Committee backs bill to allow multifamily housing in commercial districts to ‘revive Main Street’
Summary
Senate File 2286, presented as a way to build the ‘missing middle,’ was recommended by the committee after testimony that split municipal leaders wary of losing commercial tax base and housing developers and advocates who said the measure would unlock more affordable housing and reduce project delays.
Senator Clark introduced Senate File 2286, described in testimony as the Transforming Main Street Act, which would require municipalities to permit multi‑family residential development in most commercial zones, allow administrative review for qualifying projects, and provide modest density or affordability bonuses for projects that meet specified standards.
Senator Clark told the committee the bill targets the “missing middle” by allowing multifamily units and mixed‑use buildings in commercial corridors to strengthen tax bases and revive Main Streets. He cited housing cost data and affordability pressures: “600,000 Minnesotans are paying more than 30% of their income on housing,” and he said a shortage of at least 100,000 homes is driving prices up.
Supporters included nonprofit affordable‑housing developers and industry groups. Cecil Smith, president and CEO of the Minnesota Multi‑Housing Association, called multifamily housing “an excellent choice” that supports local economies and energy efficiency. Ben Helvick Anderson of Beacon Interfaith Housing Collaborative and other affordable‑housing developers said administrative review would reduce protracted public hearings, lower costs and improve feasibility for projects serving lowest‑income residents. Developers and consultants testified that lengthy, uncertain approval processes have led some viable projects to be canceled because of shifting local politics or unexpected hearings.
City officials and municipal groups again raised opposition. Susan Arntz, city manager of Mankato, said not every commercial lot is suitable for housing and urged retention of neighborhood meetings and more robust reviews for larger redevelopments. Jason Weddle, Prior Lake city manager, testified that his city is 95% residential and relies on commercial property to broaden the tax base; he also warned that the bill’s 75‑foot default building height and added density bonuses could be “completely out of scale” in smaller cities. Weddle and others warned that eliminating parking minimums could lead to chronic parking shortages, citing a recent senior housing project that has produced repeated parking complaints.
Proponents argued that permitting multifamily in commercial zones aligns housing with transit and services, can increase retail customers on Main Street and produce more tax base than some low‑value commercial uses. Senator Clark said the measure retains options for cities to limit housing in heavy industrial areas and includes exceptions where residential uses are unsuited to a site.
After testimony the committee adopted an author’s amendment and, by voice vote, recommended Senate File 2286 be referred to the Committee on State and Local Government. The motion passed; no rollcall tally was recorded in the transcript.
