City staff outlines options for workforce housing using legislative development agreements
Summary
Staff described two proposals that would use legislative development agreements to create moderate‑income housing in walkable commercial zones, keeping ground‑floor commercial uses and adding workforce housing above.
Staff told the commission the city is exploring legislative development agreements, a state‑authorized tool that would allow negotiated affordability controls with individual property owners to create moderate‑income workforce housing in town. The goal is to site housing in walkable commercial corridors so ground‑floor commercial uses remain active while housing sits above or behind commercial fronts.
Staff said the proposals under consideration are rental‑focused but noted there are purchase models that limit appreciation (staff described an example where a controlled mortgage increases only about 2% annually). The city will continue to review proposals at future council work meetings and negotiate terms if a legislative development agreement appears favorable to the city.
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