Lakeville City Council considering one-year moratorium on new housing construction

One of the hottest places to build in the Twin Cities is asking if it is growing too fast.

Lakeville is home to more than 77,000 residents and is growing quickly. New developments are pushing the city to number one in the Twin Cities for residential building permits in 2025, according to Housing First Minnesota.

Lakeville Mayor Luke Hellier says growth brings opportunities but also concerns.

"We've seen just a ton of people come in at one time so having the infrastructure to keep up with schools and streets is difficult," Hellier said. 

Now, the city leaders are weighing the benefits of a one-year moratorium that would hit pause on new housing construction. It's time, they say, they need to address the demand.

Hellier said this would not be the first time Lakeville has considered a moratorium. Back in the '90s, he said a moratorium was passed because the city did not have the infrastructure to keep up.

On the other hand, lawmakers at the Capitol are trying to keep a bill alive that would lower barriers to becoming a homeowner, including taking over zoning authority from local governments.

"Having a legislative body in St. Paul making growth decisions for us is short-sighted," Hellier said. 

Coauthor of the bill, Rep. Spencer Igo, said the point of the bill is to give people the opportunity to become homeowners. 

"When you have diverse housing options, you create affordability in the marketplace," Igo said. 

City leaders say the pace of new development is putting pressure on schools, too. In May, the Lakeville Area School District is preparing to ask voters to approve a bond referendum. The price tag is nearly $140 million to upgrade and expand middle schools 

The Lakeville City Council is set to vote on Monday on that one-year moratorium.