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URBAN DEVELOP~ENf population The Metropolitan Council's 1986 population estimate as reported by the State Planning Agency Demographer estimates Re,say's population at 11,395 comprising 3,102 households.* The ~etropolitan Council esti- mated that the number of households in the City increased by 132 during 1987 with a total estimated 3,234 households** and an estimated population of 11,706. However, in 1987, 194 new residential building pe.~mits were issued. Based on actual figures through September, an estimated 190 permits will also be issued in 1988. Thus, even the most current >lC population estimates are considered to be extremely conservative, l.Thile the city has not undertaken a special census, on the basis of the number of building permits issued and known vacant houses, it is believed that the City's current (12/88) population exceeds 12,000. This compares to MC's "official" population estimate of 12,600 for the year 2000. Residential The City has e>[perienced steady growth in the 1980's with accelerated growth in real numbers of new households over the last two years. __lus~a~es the nu~er of building pe_~mi~s issued over the Figure .~ ~ ~ ~ past eight years. As shown, urban service areas have only bean avail- able the last four years with all prior development activity in non- sewered areas. Sewer and water systems were constructed in 1985 with an initial 22 homes constructed in the sewered areas. The number of homes built in the urban area nearly doubled in !986 and again in !987. In !988, the total n~er of pe_~its issued was approximately the same as in 1987 indicating a leveling off of housing activity paralleling other trends. The 'number of pe_~mits issued'for urban area development, however, was essentially the same as in 1~87. Discussions with con- tractors and developers in the City brought forth the concern that the flattening of gro~h in the urban area was due primarily to the limited supply of quality lots remaining in the urban sera, ice area. It is estimated that fewer than 90 urban lots are currently available in the entire City. Nevertheless, the number of per-mits issued indicate that the current balance is that approximately 55% of the lots developed are in the non-sewared area and 45% are in the urban area. The City desires to be able to achieve this kind of balance and continues to desire a greater emphasis on development within the urban area. *"Population !~otes", Minnesota State Demographer, November, !987; Minnesota State Planning Agency. O~l~e of **"Minnesota Population and Household Estimates - !987" State Demographer, Nm/State ~~ Agency, Au~ust, 1988