Council approves comprehensive plan amendment, rezoning and site plan for 164-unit affordable housing project

The Cottage Grove City Council approved a series of actions to allow a 164-unit affordable apartment building by Real Estate Equities on a 4.7-acre parcel north of the Hadley Avenue and 100th Street intersection.

Senior Planner Samantha Perrier told the council the project requests a comprehensive plan amendment to reguide the parcel from medium-density to high-density residential, a rezoning from AG-2 to R-6 high-density residential, and site plan approval for a four‑story building with 164 units. Perrier said the building would be 47 feet, 10 3/4 inches tall, below the city maximum of 55 feet, and would meet parking, setback and architectural standards, including at least 65% Class 1 or 2 exterior materials.

Perrier and staff described how the DNR’s 2024 purchase of a former driving range reduces developable acreage elsewhere; part of the requested density increase relies on reallocation of units from that former driving-range area. She also said the Metropolitan Council will perform an administrative review of the proposed comprehensive plan amendment.

The developer will reconstruct Hamlet Avenue from a rural to an urban street section, add an eight-foot-wide bituminous trail on the north side of Hamlet Avenue, and provide internal sidewalks and landscaping. Perrier said existing screening on the north side of Hamlet/100th (between the site and the townhouses across the street) will remain; some pine trees on the project site’s south side will be removed and replaced per city mitigation standards.

Council Member Olson moved to approve the comprehensive plan amendment and submit it to the Met Council (resolution 2025-082); Council Member Claussen seconded. Council Member Thidi moved to approve the zoning amendment (ordinance 1101) contingent on Met Council approval; Council Member Garza seconded. Council Member Garza moved site-plan approval (resolution 2025-083); Council Member Borthidi seconded. Council Member Claussen moved the council’s support for use of Local Affordable Housing Aid for the project and to back state bonding (resolution 2025-092); Council Member Raulston seconded. Each motion passed on voice votes.

City staff explained LAHA (Local Affordable Housing Aid) is funded by a quarter percent sales-tax allocation in the metro; the city began receiving LAHA dollars in 2024 and can dedicate up to three years of those funds to projects to shorten TIF-like obligations. Perrier and staff said the project team is pursuing state bonding that staff expects to be considered in July.

Representatives of Real Estate Equities were present but made no substantive remarks in the public meeting record. Staff and council members discussed sight lines and traffic controls; Public Works staff said existing right-of-way and design meet sight-line standards for the posted speeds and that the city will continue to monitor safety as development proceeds.