Policy 2: Efficient Land Use and Density

This policy states:

Accommodate orderly and economical regional growth through efficient land use practices to reduce the cost of infrastructure expansion and service improvements. (Met Council/Local Government)

Actions

Action 2.1 - Compact Development

Promote more compact development in areas with existing infrastructure. Infrastructure investments at all scales, in all community types, need to be planned for a more compact development pattern. Compact development occurs in all areas with existing infrastructure, from rural downtowns to the growing suburban areas to the most densely developed urban neighborhoods. Planning for compact development patterns at all scales maximizes the benefits of investment, mitigates impacts of climate change, and builds localized resilience. (Met Council/Local Government)

Action 2.2 - Rolling land supply

Using a rolling land supply analysis, the Met Council will evaluate requests to connect a new municipality outside of the Met Council’s long-term sewer service area - or a new area within an already served municipality - to the regional wastewater system. The evaluation will be based on the regional need for additional land to accommodate growth and local development trends. Identifying a 20-year rolling land supply ensures that there is sufficient land within the planned Metropolitan Urban Service Area (MUSA) to accommodate the region's forecasted growth without having an oversupply that leads to premature infrastructure investments. This evaluation helps prevent inadvertent restriction of land supply that can drive up land prices, while also carefully evaluating MUSA expansion requests within a local jurisdiction and across the region. Analysis shows that there is more than adequate land supply within the current MUSA boundary to accommodate the 2050 regional growth forecasts. (Met Council)

To ensure efficient and cost-effective growth management, the Met Council standard criteria for MUSA expansion where growth had not previously been planned at a regional or local scale is described herein. The Met Council will consider the following criteria:

1. Requests must meet system conformance requirements and maintain consistency with regional policies and goals.
2. Proposed additions must demonstrate a need for additional land supply, including the need for a change to adopted forecasts. The Met Council will review requests to ensure a 20-year rolling land supply considering both regional and local market demand.  
3. For local governments already served by regional wastewater services, planned sewer-serviced densities must be consistent with regional density policy for the applicable community designation, including existing planned densities and the planned densities for the new area to be served.
4. Any previous conditions related to Met Council authorization of a comprehensive plan or plan amendments must be fulfilled and program participation (Plat Monitoring Program, building permit survey, etc.) must be current and complete.
5. Past performance must meet density expectations. The Met Council will consider a shorter look-back period for performance and/or measure performance against rules in place at the time.
6. When calculating land capacity, the following will be excluded: publicly protected areas, water bodies, wetlands, steep slopes, areas with limited depth to bedrock, depth to water table, and areas protected by public ownership/easement.

Action 2.3 - Residential density requirements

Residential density requirements are based on adopted community designations for both the rural and urban services areas (see community designations section). Local governments and land within the MUSA receive a higher level of regional services and investments than those in the rural service area, such as regional wastewater services, regional highways, transit service, and programs that support redevelopment. In return, the Met Council expects jurisdictions in the MUSA to plan for and build the higher levels of development that economically support those regional services. Compact development also reduces the pressure on agricultural land areas and decreases the impact of development on natural systems which helps manage the region’s land supply consistently and more effectively.

In addition, density requirements are necessary planning tools to meet the legislative requirement for net zero greenhouse gas (GHG) emissions by 2050 as well as the regional goal to lead in addressing climate change. While not the only tool needed to achieve the legislative requirement, every tool available must be used. Compact development has been shown to lower greenhouse gas (GHG) emissions, irrespective of the development trajectory, which is crucial in meeting the state's new GHG reduction targets and regional climate goals.

The Met Council analyzed current and projected development densities across local governments within the MUSA. The conclusions from the density analysis highlight differences between actual developed densities that exist in the built environment and planned minimum densities that are authorized as part of local comprehensive plans. Additional information on the methodology, analysis, and possible policy and planning approaches that were assessed can be referenced in the Density Analysis for Imagine 2050.

The overall density requirements for both the Urban and Rural Service Areas based on the adopted community designations must be reflected in the local comprehensive plan as outlined in the table below. (Local Government)

The Met Council will implement the following standards for regional density policy as part of the local comprehensive plan review process:

Plan for the overall minimum average net residential density expectations across all land within the city or township guided to support forecasted growth within the planning period. (Local Government)

Each local government determines how and where density is guided consistent with regional policies. Setting minimum average densities for new development provides municipalities with the flexibility to determine which areas are best suited for higher or lower density development under the framework of meeting that overall minimum on available developable lands. (Local Government)

Measure minimum net density by taking the minimum number of planned housing units and dividing by the net acreage. Net acreage does not include land covered by wetlands, water bodies, public parks and trails, public open space, arterial road rights-of-way, and other undevelopable acres identified in or protected by local ordinances, such as steep slopes. This applies to local governments within the MUSA and Rural Center communities. (Local Government)

1. Plan for forecasted growth and land supply by decade in local comprehensive plans, meeting the community designation minimum density requirements within each planning decade. (Local Government)
2. The Met Council will evaluate the practical feasibility of demand and development to ensure that both the intensity (density range) and location of planned developments are practical as part of comprehensive plan and plan amendment review. Local governments need to plan land uses that are realistically marketable within the planning period, focusing on plausibility and long-term viability. This helps prevent the overestimation of development outcomes, thereby reducing the risk of underutilized infrastructure, inefficient land management, and implausible planned densities. This differentiates between what is merely allowed and what is plausible, providing a realistic framework for land use planning. (Met Council/Local Government)
3. In the Rural Service Area, the Met Council discourages higher development densities to ensure the orderly development of the region, promote the efficient use of regional investments, and protect agricultural land, water resources, and the rural landscape. At the region’s developing edge, some local governments are split between the Urban Service Area and the Rural Service Area. All jurisdictions in the Rural Service Area are expected to set maximum allowable densities, except Rural Centers. (Met Council/Local Government)
4. In the Rural Service Area, the development pattern in Rural Residential community designations reflects both historic large lot subdivisions and areas with environmental limitations to development. This effectively precludes provision of urbanized infrastructure in an effective, connected, and efficient manner and in some cases increases the potential for damage to the environment. These areas need to accommodate minimal growth while protecting natural areas, water quality and quantity, and ensuring sufficient public infrastructure. Expansion of the Rural Residential community designation is inconsistent with regional goals and objectives and considered a departure from regional system plans. (Met Council)
5. Update and adopt administrative guidelines which offer a balanced and flexible approach to local implementation of land use and density policies, while maintaining conformance with regional system plans and consistency with Met Council policies. (Met Council)

As part of the administrative guidelines review and the implementation work plan, the Met Council will:

• • Prioritize collaboration with local government partners and regional stakeholders to best meet both regional goals and local needs.
  • Evaluate the need for updates to current administrative guidelines including the MUSA Implementation Guidelines and Flexible Development Guidelines to align with regional goals and to effectively advance the policies in Imagine 2050.
  • Evaluate the net residential density calculations guidance and assess the implications of excluding stormwater management areas, permanent public easements, and others.
  • Update the Plat Monitoring Program to better reflect more recent development patterns by examining a lookback period that is not dependent on when the program was initiated in 2000, or when participation in the program began.
  • Consider how flexibility for infill and redevelopments may be accommodated based on their different infrastructure needs and ability to meet different regional goals.
  • Consider positive past planning outcomes and innovative local initiatives which have supported regional goals including existing development patterns, adopted plans and ordinances, as well as other relevant data.
  • Provide the necessary tools, resources, and technical assistance to help local governments meet these planning expectations.

Action 2.4 - Future affordable housing need densities

Guide an adequate supply of land at the following appropriate minimum densities to meet their allocation of the regional Future Affordable Housing Need. This applies to local governments with forecasted sewer service. Refer to section 4 of the Housing Policy Chapter on Land Guided for Affordable Housing for more information. (Local Government)

Average minimum densities apply to all areas guided to support forecasted growth within the planning period.

Action 2.5 - Transit station area densities

Focus local-level growth near high frequency transit service and station areas, to leverage infrastructure investments, support transit ridership, and encourage compact and vibrant mixed-use, walkable areas. Housing is a vital element of a transit-supportive land use mix, and average residential density is a common metric employed in transit-oriented development plans regionally and nationally. The appropriate scale of residential density around stations varies by community designation and transit mode. Residential development around station areas, existing and planned, accounts for nearly half of all multifamily residential development in the region. Between 2009 and 2023, new residential development around station areas frequently ranged from 30 to 40 units per acre, with higher average densities at stations in the urban areas. (Met Council/Local Government)

1. Jurisdictions with transit investments need to meet higher average minimum densities within station areas, depending on the transit type. The average minimum density requirements for all areas planned to accommodate forecasted growth for each transit type and geography by community designation are in the table below. (Local Government)
2. Residential density is measured as an average of all new residential development and redevelopment in the station areas, calculated on the basis of net developable acres. The average provides flexibility for individual jurisdictions to plan for a range of residential types and densities, mixed with other uses in the station areas. (Met Council/Local Government)

Action 2.6 - Housing types within the MUSA

Communities within the MUSA need to allow for more than one housing type in land use categories with residential uses. To accommodate this, residential densities for land use categories need to provide a wide-enough range of densities so that more than one housing type can be developed within individual land use categories. Single-use residential districts, particularly on the lower density end, limit the diversity of housing within the region and prevent more efficient use of land. Also, single-family residential districts occupy more land than any other use within the Urban Service Area. Limiting such a large land supply to one housing product impacts land use efficiency, diversity of housing stock within neighborhoods and across the region, and availability of options for residents to stay within the community of their choice as their needs and abilities change. (Local Government)

Action 2.7 - Orderly annexation agreements

Encourage orderly annexation agreements (OAAs) between cities and adjacent townships to encourage planned and orderly development in rural areas, where applicable. (Met Council/Local Government)

1. Local governments may only plan for areas within their municipal boundaries (Minn. Stats. 462.353, subd. 1 and 462.357, subd. 1) unless an orderly annexation agreement authorizes another jurisdiction to assume planning authority. Planning to use the annexation-by-ordinance process does not convey long-term planning authority and will not be considered as part of comprehensive plan review. As annexations-by-ordinance occur, a comprehensive plan amendment should be submitted to integrate new growth areas into the local plan and update land uses, forecasts, and other changes as needed. Local planning that encompasses areas outside of jurisdictional authority will not be considered as part of the Met Council’s review and authorization of local comprehensive plans. (Local Government)
2. Orderly annexation agreements must encompass the planning horizon and identify needed updates that occur within the planning period. The Met Council will evaluate the land capacity to accommodate forecasted growth in the OAA area. If an adopted OAA terminates prior to the end of the planning horizon, additional land supply within the jurisdictional authority of the local government may need to be identified to accommodate any additional forecasted growth or the Met Council may consider a forecast adjustment. Plan authorization may only apply to timelines permitted within the orderly annexation agreement. (Met Council)
3. The Met Council supports a cooperative, orderly planning approach that protects the long-term viability of growth and development of Rural Center communities. Where appropriate and requested, the Met Council may act as a convener between jurisdictions to help facilitate discussion and resolution of annexation-related issues. (Met Council) 
4. Unincorporated areas surrounding Rural Centers, and some Suburban Edge communities, guided by the current local government jurisdiction for future urban expansion should not encourage a development pattern that precludes the extension of future urban services. Even if a particular land use may be acceptable in the Rural Service Area from a regional perspective, the Met Council does not encourage land uses or development that would be incompatible with plans of adjacent jurisdictions.
5. Where the extension of long-term regional sewer service may be under consideration or planning, the Met Council will evaluate the overall impact of interim uses in rural and agricultural areas to ensure conformance with regional system plans and avoid departures from those plans. (Met Council)