Property owners propose denser ‘missing‑middle’ subdivision; planning staff to explore comp‑plan change

Tim Olsen and Steve Wepner, owners of property fronting Vilas Road, presented a concept plan to the Cottage Grove Planning Commission for a potential new subdivision designed to add denser housing types aimed at first‑time buyers.

The proposal uses a planned unit development model to fit smaller lots and a mix of housing types — including duplex “twin homes,” four‑unit buildings and some eight‑unit structures intended for ownership rather than rental — and would require a change to the village comprehensive plan to allow a higher share of multifamily building types.

Olsen said the site already has sewer and water granted to the property. “We have sewer and water granted to the property,” he told the commission, and said developers are seeing demand for smaller, lower‑priced ownership units. He described market examples where builders sell product before construction and can reach price points “around 400,000, you know, or below 500 for sure,” by shifting to denser building types and smaller lots.

Why it matters: commissioners and residents said the proposal addresses local demand for “missing‑middle” housing — housing between single‑family detached homes and large apartment complexes that can be affordable for first‑time buyers. Under the current comp plan the village requires a minimum percentage of single‑family units in this neighborhood; staff said that threshold (65% single‑family) would need to change for the concept the owners described.

Commission discussion and details
Commissioners and attendees raised design, utility and phasing questions. One participant noted preference for smaller multifamily formats (twin homes and four‑unit buildings) over large apartment blocks; another asked about park and conservation areas. Olsen described a conserved creek buffer and a ridge of pine trees intended for walking paths and passive open space, while the larger park space lies across the street.

On utilities, a speaker identified as Ty said utilities are “stubbed out” near Bakken Park and that a large lift station sits on Vilas Road; staff emphasized that detailed utility costs and capacity would be explored as a developer is engaged. On parking, Olsen said building designs they are reviewing include substantial underground parking for larger buildings with surface parking used primarily for guests.

Timeline, scale and affordability
Presenters and commissioners estimated build‑out would be long term. Olsen said a project of this scale could take roughly a decade to complete even with steady yearly production: “to do this project, it would probably be real close to 10 years,” he said. He and others discussed typical unit sizes and lot footprints — Olsen said lots in comparable projects can be about 5,000 square feet and that many of the smaller ownership units being sold in the market are configured as three bedrooms and two baths with a shared wall.

Next steps and staff direction
Planning staff raised the need for a comprehensive‑plan amendment to allow the mix of building types the owners propose. A staff member asked whether the commission wanted staff to draft language addressing the neighborhood; commissioners expressed support for exploring a plan change and for early engagement with potential developers. Aaron (planning staff) summarized the meeting’s tone as positive and indicated staff will continue the process: “Sounds like the feedback is pretty positive here, so we can keep moving forward.”

Votes at a glance
- Motion to approve the meeting minutes (from the prior planning commission meeting dated 05/28/2025): motion presented and seconded; vote recorded as “Aye” and the motion carried. (Mover/second: not specified.)
- Motion to adjourn: motion presented and seconded; vote recorded as “Aye” and the meeting was adjourned. (Mover/second: not specified.)

Upcoming items noted
Staff said an applicant near Commerce Park (behind Johnson HealthTech) is planning to seek annexation, zoning and site plan/conditional‑use review for an indoor sports facility at a future meeting. A property owner who had inquired about adding units to a two‑unit building was referred to the fire department for code requirements and may return with revisions.

Ending
Commissioners encouraged early involvement of the village in discussions with any developer to shape building types and avoid larger apartment buildings; staff will draft and return with options for a comp‑plan amendment if the commission wants to proceed. No formal land‑use approvals were taken at this meeting.