Dundas Advances Major Housing Plans as Demand for Workforce Homes Grows

By Rich Larson, KYMN News

The City of Dundas is preparing for a significant expansion of its housing stock as the City Council moves forward with plans for more than 100 new residential lots amid strong regional demand for workforce housing.

During the Dundas City Council meeting, the council approved a preliminary plat amendment for the Stoneridge Hills Second Addition, a 60‑lot single‑family subdivision proposed on the west side of town near County Road 78 and Dundas Boulevard. Dundas City Administrator Jenelle Teppen said the project, led by national homebuilder D.R. Horton in partnership with Land Craft Development of Woodbury, marks an important step in addressing housing shortages across the region.

“This is very exciting,” Teppen said. “Dundas is growing, and these homes meet a real need in our community.”

The development amends an existing Planned Unit Development (PUD) to allow for smaller lots and slab‑on‑grade homes, a shift from the city’s traditional 10,000‑square‑foot single‑family standards. Teppen acknowledged that change has sparked some controversy, but said the PUD process is specifically designed to help cities respond flexibly to market trends.

D.R. Horton has successfully built similar homes in other Minnesota communities, and Teppen said the company sees strong demand for the styles proposed in Dundas.

Complicating the project is the long‑delayed installation of essential infrastructure originally planned during the early 2000s. Pandemic‑era cost spikes for utilities and roads have intensified financial challenges, leading the developer to request tax increment financing (TIF) assistance from the city. The council scheduled a public hearing on the TIF request for later this spring.

If approved, the TIF arrangement would require future buyers to meet income‑qualification standards. Teppen emphasized that these homes are not low-income units, but rather workforce housing aimed at teachers, police officers, young families, and others priced out of the current market.

“Housing is absolutely economic development,” Teppen said. “This is one of the tools we can use to move projects forward.”

The council also approved the preliminary plat for Dundas Commons, a five‑lot commercial development at Highway 3 and County Road 1, signaling continued commercial growth alongside the city’s expanding neighborhoods.

Rich Larson is the owner and General Manager of KYMN Radio

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