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City administrator warns state housing bills could remove parking rules, affecting local development

Kasson City meeting · April 2, 2025
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Summary

The City Administrator said several state housing bills are moving that could eliminate some parking requirements for new multifamily development, a change that may affect local projects and the draft TIF plan under review.

The City Administrator told the meeting that several pieces of state housing legislation—expected to advance this session—could change development rules, including removing parking requirements for some new multifamily projects. He said some bills may exempt cities under 10,000 residents, but that parking rules appear likely to be loosened in many areas.

“We're seeing legislation that's going to definitely have an impact on new development with multifamily and lot sizes… the parking requirement is one thing that's definitely going to be eliminated it sounds like for any new developments,” the City Administrator said.

Why it matters: Changes to state parking rules could alter the calculus for local developers and municipal review, affecting whether projects need municipal mitigation for school traffic and on‑street parking. The Administrator tied the potential change to a local TIF request under review and to a planned city TIF policy to standardize responses to future requests.

Discussion: Staff noted the county has been active on related policy, and the Administrator said the city will prepare a draft TIF policy for the next meeting to ensure consistent rules for future TIF requests. The Administrator flagged that changes would be most consequential in metro areas but could also affect small cities if state law preempts local standards.

Next steps: The city plans to bring a draft TIF policy to the next meeting and will monitor the state bills as they move through the legislature.