City Council Meeting Date: November 26, 2024
To: Mayor and City Council
City Administrator
From: Melissa Hanson, Housing Coordinator
Title
Public Hearing on Sale of Property for Northfield Hospital + Clinics.
Body
Action Requested:
The Northfield City Council will hold a public hearing on the sale of property for Northfield Hospital + Clinics and removal of restrictive covenants at 706 & 716 2nd Street West, Northfield.
Summary Report:
The City of Northfield owns 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 unoccupied and being used by the Hospital for storage. The property was originally donated to the City of Northfield for hospital use. As a municipal hospital, the City of Northfield is owner of the property and retains authority over the real estate decisions of the property assets.
The Northfield City Council called for the public hearing to consider sale of property and removal of restrictive covenants on November 12, 2024. The public hearing notice (attachment 1) was published in the Northfield News on Wednesday, November 13, 2024. The public hearing will be followed by a proposed action item approving the sale.
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.
As the Hospital Board considered the future of the property, Hospital staff and City Administrator Martig requested a review of possible interest from the Housing and Redevelopment Authority (HRA) and the Parks and Recreation Advisor Board to consider potential outcomes for the property as advisory to the City Council prior to any action.
The Parks and Recreation Advisory Board met on June 3, 2024, and discussed their interest in the property. They concluded that the purchase of the property did not align with their existing operating plan and passed on the opportunity to purchase the property.
Given the identified need for additional homes in Northfield and the potential this opportunity could offer to add homes to Northfield’s supply, the HRA reviewed the opportunity to purchase the properties from the Hospital at the June 6, 2024 meeting. Attachment 2 is the HRA staff report and information that was provided. Staff also seeks the removal of the part of the deed restriction (attachment 3) that contemplates future design standards. The deed restriction singles out that only single-family residences, with specific identified material and roof pitch, are allowed to be constructed on these lots. This restriction limits flexibility in construction and zones out opportunity for “missing middle” housing construction.
On September 26, 2024, the Northfield Hospital + Clinics Board of Directors approved the sale of 706 and 716 Street West to the Northfield HRA for $325,000. Attachments 4 and 5 are the minutes from the Board of Directors meeting and a memo to City Council requesting the sale of the Ambulance storage garage. On November 5, 2024, the HRA passed HRA Resolution 2024-007 (attachment 6) approving the acquisition of the property and approving the purchase agreement (attachment 7).
City Administrator Martig will introduce the topic. Following City Administrator Martig’s comments Housing Coordinator Melissa Hanson will give a brief introduction and presentation (attachment 8) on the recommendation.
Eric Guth, Northfield Hospital + Clinics Vice President and Chief Financial Officer, will be present at the meeting to answer questions there may be from the hospital perspective.
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:
November 21, 2024: Planning Commission reviewed compliance with the 2008 Comprehensive Plan
November 26, 2024: Council to hold public hearing for sale of real property and approve the removal of restrictive covenants.
December 2024: Closing