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Sustainable Building Policy
Achieving sustainability in the built environment
Cities throughout Minnesota seek to improve public health, environmental justice, and environmental and economic sustainability. Many cities are taking advantage of building-related strategies to reduce carbon emissions and waste, protect natural resources, and mitigate stormwater runoff. With a sustainable building policy, cities can use public financing and their authority over land use to make meaningful progress toward achieving their sustainability goals.
To support our climate action plan goals and building investment, the City of Northfield adopted and approve a sustainable building policy on January 4, 2022.
Download the Sustainable Building Policy (PDF)
Leveraging financial incentives, a sustainable building policy establishes minimum sustainability criteria that go beyond existing state code for new construction and redevelopment. Included sustainability criteria typically target reducing pollution and conserving resources. This policy is voluntary for developments not seeking financial incentives.
What are the benefits?
- Ensures new construction is on the forefront of efficient building construction.
- Improves Northfield’s building stock with healthy and sustainable buildings.
- Creates demand for sustainability in the property market.
- Supports Northfield’s Climate Action Plan goal to achieve 100% carbon-free electricity by 2030 and being a 100% carbon-free community by 2040.
Policy framework
The sustainable building policy applies to projects that receive funding from the City of Northfield, Housing & Redevelopment Authority and Economic Development Authority. Compliance with the policy is based on the amount of funding received and size of the project (additions and renovations only). The policy is structured to give developers the power to choose their preferred third-party rating system based on building type, as well as their expertise and experience.
Policy details
Policy triggers
New construction and redevelopment projects that receive at least $150,000 in funding from the following funding sources will trigger the policy:
- Tax increment financing (TIF)
- Housing & Redevelopment Authority loans
- Economic Development Authority loans
- Land write-downs
- Bonds
- Conduit financing
- Other City of Northfield funding
In addition to receiving at least $150,000, interior renovations and new additions must also be 10,000 square feet or larger, and include the replacement of the mechanical, ventilation or cooling systems to trigger the policy.
Funding tiers
Policy triggers are structured into two tiers:
- Tier 1: Projects receiving $150,000 to $300,000 in funding from a combination of the eligible funding sources will be asked to provide a proforma demonstrating the infeasibility of adopting a rating system if they are unable to follow the policy.
- Tier 2: Projects receiving more than $300,000 in funding from a combination of the eligible funding sources will be required to follow the policy.
Sustainable rating systems
Developers can select from the following third-party rating systems to adhere to the policy:
- LEED
- B3 Guidelines
- Green Star Homes
- Green Communities
- Park Smart
- Other rating systems as approved
Northfield green requirement
In addition to building to a sustainable rating system standard, projects will be asked to evaluate the feasibility of 2% of on-site renewable energy and feasibility of electrifying their building (i.e., powering their building with only electricity).
Joining sustainability leaders
Northfield, with its adopted policy, has joined the cities of Duluth, Maplewood, Minneapolis, Saint Paul, St. Louis Park, and Rochester who all have a formal sustainable building policy, along with another city that is in the process of creating its own policy. The cities of Saint Paul and St. Louis Park have been implementing their policies for more than 10 years, providing multiple local examples of successful policy implementation.
Technical assistance for implementation
Hennepin County Efficient Buildings Collaborative provides cities with a platform of shared resources to lower costs and exchange best practices. Hennepin County is currently undergoing a competitive RFP process to hire a vendor to provide education, technical resources, and compliance assistance. Upon policy passage and joint powers agreement approval, the City of Northfield and developers will have access to the selected vendor. It is important to the City that the appropriate technical resources are available for successful sustainable building construction.
- What developments does this policy apply to?
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This policy applies to new construction and significant renovations and additions in municipal developments and developments seeking a financial assistance in the form of:
- Housing and redevelopment funds
- Tax increment financing (TIF)
- EDA – only grants and forgivable loans
- Land write downs
- Bonds
- Tax abatement
- Low-income housing tax credit
- MIF
- Conduit financing
- All projects with state and federal funding requiring approvals by the city (i.e. ARP)
Significant renovations and additions are defined as those that are of 10,000 square feet and greater and replacing or installing HVAC equipment.
- Why use a third-party rating system? Will this increase the cost of development?
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Using a third-party rating system, such as LEED or Minnesota Green Communities, ensures that buildings are meeting sustainability requirements that are widely recognized as best practices. Doing so also clarifies liability and also allows for more certainty for the design team in knowing the policy requirements will be met. The cost for engaging the third-party rater is typically less than one percent of the cost of a project and when examined early in the design process, studies show that utilizing sustainability practices contributes 1 to 3% to total costs on average.
- How does the city have the authority to do this policy? Is this a code?
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Cities have the authority to add conditions when granting financial assistance. The Sustainable Building Policy is a set of requirements ONLY for buildings requesting financial assistance through the city. Buildings not receiving financial assistance would not be subject to the requirements. Because of that and that the state establishes the building code, this policy is not a code.
- How were the listed rating systems selected?
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The policy aims to cover a broad spectrum of sustainability areas including energy, water, waste, and materials. The listed rating systems were selected because they achieve that aim and because they are used in similar policies by other cities in the region. Creating regional consistency helps to improve implementation efficiency and lower costs. As rating systems are constantly evolving, the policy is designed for flexibility with other equivalent rating systems being allowed as approved by the city for an individual development. These two tables describe the rating systems and Northfield Green Requirements (NGR) standards:
Rating systems
Rating system Applicable developments Certification body Description Commercial, multifamily
University of Minnesota Center for Sustainable Building Research (CSBR)
Minnesota-specific rating system. Developed originally for state of Minnesota bonded projects. It is available now for all developments for a fee.
Categorizes requirements by:
- Performance management
- Site and water
- Energy and atmosphere
- Indoor environmental quality
- Materials and waste
Commercial, multifamily, single family
US Green Building Council
Globally recognized rating system. It is available for all developments for a fee.
Categorizes requirements by:
- Location and transportation
- Sustainable sites
- Materials and resources
- Indoor environmental quality
- Water efficiency
- Energy and atmosphere
Green Communities
Multifamily
Minnesota Housing Finance Agency for projects receiving their funding; otherwise Enterprise
Enterprise Green Communities is a national rating system targeted at multifamily. It is available for multifamily developments for a fee. The Minnesota Housing Finance Agency requires implementation of and provides technical resources for the Minnesota version of that standard for projects it funds.
Categorizes requirements by:
- Integrative design
- Location and neighborhood fabric
- Site improvement
- Water
- Operating energy
- Materials
- Healthy living environment
- Operations, maintenance, resident engagement
Parking structures
Green Business Certification
Globally deployed rating system. It is available for parking developments for a fee.
Categorizes requirements by:
- Management
- Programs
- Technology and structure design
- Innovation
Northfield Green Requirements (NGR) standards
NGR requirement Standard Applicable developments Certification body Description Energy efficiency
Commercial, multifamily
University of Minnesota Center for Sustainable Building Research (CSBR)
Minnesota-specific performance standard following the Architecture 2030 model that seeks net zero energy construction by the year 2030. In 2021, the standard is 80% more efficient than the same building built to code in 2006. Prescriptive path is available.
Energy efficiency
1 to 3 unit residential
U.S. Department of Energy
National standard targeting small residential with both prescriptive and performance based paths.
Renewable energy
Commercial, multifamily, single family
US Green Building Council
Evaluate the feasibility of sourcing 2% of energy load with on-site renewables. Install if cost-effective per B3 guideline.
- How does this policy relate to the ever-evolving rating system versions and energy code?
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The policy requires compliance with the most recent rating system version in existence at the time of development application. Where elements of the selected rating system and energy code differ, the policy requires adherence to the most stringent.
- How many projects does this apply to?
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Looking back five years, this policy would have applied to seven developments. If historical development patterns continue, we’d anticipate about 1 to 3 projects per year would be subject to the sustainable building policy.
- What happens if a developer chooses not to the follow the policy? What happens if the project doesn’t certify under the chosen requirements?
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Developers who request funding from the City of Northfield will be notified of the sustainable building policy. If the developer chooses not to follow the policy, the city can withhold granting the funding request. Once the project is complete but chooses not to certify under the chosen sustainability standard, the city has the option to rescind the funding incentives provided.
- Can the city reduce taxes for homeowners if they choose to do this type of building?
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This is not part of the policy.
- What if a project can’t meet some requirements due to factors that are outside of project control (for example Green Communities requires public transportation locations nearby)?
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Compliance will be based on specific context of developments. Because most publicly funded developments involve negotiations with the city, such elements will be addressed in that process.
- Is the city considering specific incentives for the sustainable building policy?
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No, not at this time.