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Minnetonka church offers land for affordable housing as city reaches max capacity

Minnetonka church offers land for affordable housing as city reaches max capacity.
Minnetonka church offers land for affordable housing as city reaches max capacity. 02:13

MINNETONKA, Minn. -- The City of Minnetonka is not a motel, and operating at capacity is not a good problem.

Real estate listings show only 120 properties for sale in Minnetonka among roughly 16,000 single-family homes - 0.75% of total inventory - while just 3% of apartment units are currently available for rent.

"Minnetonka is a mature suburb, so development is a challenge," David Landt, Pastor at Mills Church, explained to WCCO. "I don't think there's been new construction of single-family homes or townhomes for under $750,000 for the last decade."

Landt has been the spiritual leader at Mills Church for nearly 20 years, while the church itself dates back to the late 1800s. The historic church property sits on 5.5 acres of prime real estate near the corner of Minnetonka Boulevard and Plymouth Road, much of which Landt said is underutilized. 

That's why he said the church is considering offering the land to Habitat for Humanity which could then convert the land into affordable homes and townhomes. According to a Concept Plan submitted to the city, a parking lot and open space could become two, six-unit townhome buildings, while two single-family homes could be constructed on vacant lots on Elm Lane.

"I didn't come to feel the way I think about this overnight," Landt explained. "Seeing in our own congregation how financial stress about housing and rent really cripples families - it is a really serious problem. Can I continue to call this a community church if so many people can't afford to live here? Not so much."

The Concept Plan is not an official rezoning application, but it appeared before the Planning Commission and City Council for feedback from both members and residents. According to the minutes from those meetings, dozens of current neighbors expressed general support for affordable housing but they said they hold reservations about increased traffic and how townhomes might change the historic nature of the area.

City officials told WCCO increasing affordable housing in general is a top priority for city leaders as a city pricing out young families will not be able to sustain itself.

A 2021 report from the city's economic development and housing manager reported the city added 1,748 units of multifamily housing since 2015, with an additional 1,900 "that are under construction or under consideration." The City of Minnetonka has also engaged prospective residents with the Homes Within Reach program, as well as offered down payment assistance.

Pastor Landt said Mills Church is hoping to submit a formal application for rezoning later this year, at which time the Planning Commission and City Council can make an official recommendation and vote. The proposal's appearing on an upcoming meeting agenda will also be an opportunity for public comment.

"We're in this unique situation where we're not this developer buying this property, developing it and leaving," Landt said. "We're here too."

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