City Council Meeting Date: November 26, 2024
To: Mayor and City Council
From: Ben Martig, City Administrator
Melissa Hanson, Housing Coordinator
Title
Consider Resolution Approving Sale of Property to Northfield HRA.
Body
Action Requested:
The Northfield City Council passes a motion to approve Resolution Approving the Sale by the Northfield Hospital & Clinics of Real Property at 706 and 716 2nd Street West Northfield, Minnesota.
Summary Report:
Northfield Hospitals and Clinics own property at 706/716 2nd Street West, adjacent to Way Park. The properties include a vacant parcel and a parcel with a single-family home that is currently unoccupied and being used by the Hospital for storage. The Hospital Board approved the sale of the property at the Hospital Board of Directors meeting on September 26, 2024. Under City laws for the hospital, the City Council retains authority over the sale of property.
Per Northfield City Charter Section 15.5 a public hearing is required prior to the sale of real property.
City Charter Section 15.5.- Sales of Real Property
The council may by resolution approved of by at least five (5) members sell or otherwise dispose of any real property of the city. A sale or other disposition of the city’s real property may be made only after a public hearing has been held and published notice of the hearing has been given at least ten (10) but not more than thirty (30) days prior to the hearing. The net cash proceeds of the sale of the property shall be used to retire any outstanding indebtedness incurred by the city in the acquisition or improvement of the property. Any remaining net cash proceeds shall be used to finance other improvements in the capital improvement budget or to retire any other bonded indebtedness.
The HRA’s mission is to be a partner in providing a sufficient supply of affordable, adequate, safe and sanitary dwellings in Northfield. Our goal is to create a community with housing opportunities available along the entire housing spectrum: from renters to homeownership, first-time homeowners to senior living, workforce housing, and empty nesters.
The Resolution and purchase agreement (Attachment 1), a memo with hospital minutes from the NH+C (Attachments 2 & 3) requesting/approving the sale and aerial map (Attachment 4) is included.
Alternative Options:
N/A
Financial Impacts:
The property was originally donated to the City of Northfield for purposes of hospital use. The HRA purchase proceeds of $325,000 will be provided to Northfield Hospital and Clinics.
Tentative Timelines:
• May 2024 - City Administrator requests HRA and Parks and Recreation Advisory Board staff to review a potential property acquisition from NH+C
• June 2024 - Parks and Recreation Advisory Board decline opportunity
• June 2024 - HRA moves support to pursue the purchase of property
• September 2024 - Hospital Board approves sale and purchase agreement
• November 12, 2024 - City Council calls for public hearing
• November 13, 2024 - Notice of Public Hearing published
• November 21, 2024 - Planning Commission Comprehensive Plan conformance review
o November 26, 2024 - City Council Public Hearing on property sale
o November 26, 2024 - City Council considers resolution to release and terminate declarations
• related to the property and authorizes property sale
o December 31, 2024 - Closing Date