Where Elan is going.
Ah, Elan. I only know it by that name.
I understand where you're coming from. But I just don't accept that keeping some SFHs in the area is somehow locking people out of living there.
From 1990 to 2010, the population of the Wedge went from 5,933 to 6,150, a 3.6% increase. In that same time, the metro area grew by 29.2%. That means while the region saw pretty strong population growth, the Wedge did not keep up with it (if it matched regional growth, that would mean 1,515 extra people living in the Wedge today, possibly more). For comparison of home values, the Wedge has several Census blocks, and the median single family (1-unit), detached home price in 2010 for them was $215k, $266k, $175k, $95k (the 1 block strip along Hennepin), and $510k. Average (assuming all blocks have equal number of homes): $252k. Median home price in the City of Minneapolis: $221k. Median home price of the Metro region: anywhere between $162 and 182k, depending on the source and whether you count 7-county or 13 county. So yes, I'd say that limiting housing stock explicitly by protecting the SFHs in the Wedge has done 2 things: 1) limited people from living there, and 2) made living there more unaffordable by restricting supply, further locking people out.
If a 13 story tower on Hennepin isn't financially feasible, build an 8 story apartment. Whatever works. If a 5 story apartment on a couple of current SFH lots is financially workable while a larger building on Hennepin is not, I really wonder why that would be so. Every developer I've ever talked to wants to go higher.
This is the exact case I'm making. To satiate a certain contingency of residents, would-be residents, and people who'll never live in the neighborhood but simply like the nostalgic feel of the area, we're telling a developer not only what they can and can't buy/develop, but how much money they can make doing it. A 13 story apartment on Hennepin may not be financially feasible, but a 6 story one on the core might be. That same 6 story one might have a yearly profit of X, which is greater than building an 8 story unit on Hennepin. All of this Randian talk (which in most cases I get sick of) ignores the societal benefits of maximizing those 'core' parcels' proximity to jobs, lakes, trails, rails, and shopping.