City Council Packet with Presentations 02 17 2026

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The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 7.5 Meeting Date February 17, 2026 Prepared By Zack Carlton, Community Development Director Item Description Ordinance Amendment 26-04: One-Year Moratorium on Permitting Multifamily Structures Reviewed by Jared Shepherd Cal Portner Jolene Richter Action Requested Adopt, by motion, Ordinance 26-04 establishing a one-year moratorium on the issuance of building and land use permits for multifamily buildings. Background/Discussion The 2026 Capital Improvement Plan (CIP) includes funding for a full review and rewrite of the city's zoning and subdivision ordinances. This review will ensure that our ordinance is consistent throughout and complies with state and federal laws. However, a larger goal of the project is to write an ordinance that supports the city as we grow under the guidance of the Comprehensive Plan. One of the most important components of the city's growth is housing. The Comprehensive Plan includes a new strategy for how the city can address affordability in the housing market by allowing gentle increases in density within existing neighborhoods. This concept is referred to as the "missing middle," and encourages ordinance modifications to allow additional housing types (duplex, townhome, etc.) within single-family neighborhoods. In order for this strategy to be effective, the location, housing styles, performance standards, and other factors must be carefully reviewed and considered. To provide the city with the best opportunity to get these recommendations right, staff are recommending the adoption of a moratorium on all new multifamily housing. This includes everything from duplexes to apartment buildings. Single-family development will be allowed to continue as normal, as will be permitting for multifamily projects that were submitted before the effective date of the ordinance. The moratorium also directs staff to move forward with securing a consultant to assist with the ordinance update and bring the recommendations forward to City Council for their consideration. The moratorium will expire one year from the effective date of the ordinance. Financial Impact The moratorium does not have a direct cost, and the cost of the ordinance update will be noted when the city selects a consultant for the project. Mission/Policy/Goal Appropriately govern in an ever-changing environment. Page 176 of 395