HRA Meeting Date: June 6, 2024
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
HRA to Review the HRA Purchase of 308 Cherry Street.
Body
Action Requested:
HRA to review the attached approved Resolution and purchase agreement for the purchase of 308 Cherry Street.
Summary Report:
In spring 2023, HRA staff approached the property owner of 308 Cherry Street (after securing and purchasing the property at 315 Linden Street North) to inquire if the property owner has an interest in selling the property. The property owner lives in California and the home has been rented to a family friend for many years. The owner had been considering selling the property, and agreed to negotiate with the City HRA for the purchase of the property for $350,000.
The lot is approximately half an acre in size and utilities are present. The house is a 1963, 1-level home and has not had any major updates or improvements since 2007 with the installation of windows and 2006 with roof replacement. To the east of the property is the HRA owned vacant lot 315 Linden Street North. The properties are zoned R-1B low density residential.
The Residential (R1) district generally includes the established neighborhoods surrounding downtown Northfield that are characterized by traditional urban development qualities such as a grid pattern street network, sidewalks, and a range of single-family, tow-family, and some multi-family dwellings on smaller lots. The purpose of the R-1B district is to continue to support single-family, two-family, and three-family attached and detached dwellings within the existing character of the city’s older neighborhoods. The essential existing character of the R1 district should be reinforced with any infill or redevelopment of properties and will be required to conform to the City’s adopted Neighborhood Compatibility Requirements and Site Development Standards as part of the Land Development Code.
As part of negotiation, the property owner requested a closing date of July 1, 2024. City staff has been in communication with the property owner and all parties are moving forward with an anticipated closing date of July 1, 2024.
The HRA exists, in part, to provide a sufficient supply of adequate, safe, and sanitary housing. At this time, the HRA does not have a housing project selected for the property, but recognizes the importance of in-fill and density is to the City of Northfield’s housing strategy.
Alternative Options:
The HRA could choose not to take advantage of this opportunity and the homeowner would sell the property on the open market.
Financial Impacts:
Funding for the purchase would be made with reserve funds. HRA reserves are estimated at $1,027,013.
Tentative Timelines:
Closing would be scheduled for July 1, 2024.