HRA Meeting Date: May 2, 2024
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Jake Reilly, Community Development Director
Title
Consider Land Disposition Policy of the Northfield Housing and Redevelopment Authority.
Body
Action Requested:
Review and consider adopting a Land Disposition Policy.
Summary Report:
The Northfield Housing and Redevelopment Authority’s (HRA) mission is to be a partner in providing a sufficient supply of affordable, adequate, safe, and sanitary dwellings in Northfield.
The 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 HRA board strives to create affordable housing opportunities and strengthen neighborhoods using the following:
• Sustainability
• Innovation
• Partnerships
• Community Input
Throughout the years, the HRA has come to own Real Property through various means, including by purchasing homes/properties in foreclosure and those offered through the County’s tax forfeiture profess. A handful of properties have been purchased through direct negotiations with a property owner. The HRA has also sold to and partnered with developers for the development of land owned by the HRA, including Spring Creek I & II, Hiley-Neff development, and the Cannon River Community Land Trust to name a few.
As the HRA contemplates the future of housing in Northfield alongside the impact of a well-documented growing housing supply issue and while the City is leading the development of the 2045-horizon Comprehensive Plan, the board and staff agreed it was time to establish criteria for the disposition of HRA-owned land, with the understanding and belief that establishing such a policy would provide clarity to project proposers and the public, and afford the board a framework for decision-making. Staff first reviewed current City and Department policies to determine if there was an existing policy and/or procedure for selling property.
Staff determined that there was no existing policy or procedure, outside the provisions in Section 15.5 of the City’s Charter addressing “Sales of Real Property.”
Chapter 15, Section 15.5 - Sales of Real Property of the City’s Charter states,
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.
(<https://library.municode.com/mn/northfield/codes/code_of_ordinances?nodeId=PTINOCH_CHFIFTEENGEPR_S15.5SAREPR>)
In the absence of a formal HRA-specific policy, staff consulted with the City Attorney and the HRA convened a subcommittee to develop a disposition policy. Having a policy is likely to have the benefit of guiding HRA board members in their decision making about how and what to budget for HRA-sponsored development and redevelopment, grant-making, and general financial support for housing development - whether for-profit or non-profit; whether for individuals or firms - moving forward. At this time, funding requests come to the board as projects arise and there is not always a clear connection between any overarching goals or guidelines for the City/HRA and the request. A policy has the potential to align financial decisions of the HRA with long-term visions and goals of the and HRA.
The subcommittee members are Commissioners Crow, Nystrom, and Zuccolotto, and former Commissioners Dee and Gerdes.
The subcommittee-drafted policy that was first reviewed by the HRA Board at the December 18, 2023 HRA meeting is attached (Attachment 1).
Background on HRA Authority
The HRA is a public body of the City of Northfield, created by City Council Resolution on December 17, 1968 and reactivated by Resolution 90-250 in order to carry out stated desires and needs specific to housing opportunities for all economic levels. The HRA is legally independent from the Council and funded by multiple sources, including primary funding from property tax levy dollars. County, State, Federal, and non-profit grant funds are also part of the budget.
The City Council authorizes funding annually to the HRA for housing and redevelopment (including the ability to fund commercial) initiatives. The HRA operates independently, yet it is important for work plans to align with city policies, strategic plan and other goals of the City Council. The HRA board exists because of City Council authorization and should be working as an instrument to advance overall City goals. Additionally, personnel policies and staffing fall under the overall City authority.
Following a request by Mayor Pownell, the City Council reviewed and commented on the subcommittee-recommended version and a staff-recommended version of the policy at the February 13 Council work session.
The subcommittee met several more times to work through Council feedback and staff recommendations. Individual comments or questions have been considered and are incorporated. A redlined version of the subcommittee recommended policy is included as Attachment 2. A clean version of the final subcommittee recommended policy is Attachment 3.
Alternative Options:
1. Refer the item back to staff for additional review and amendments.
2. Decline to adopt a policy.
Financial Impacts:
Although adoption of a policy does not have direct financial impacts, how the policy is used and how funds are spent are closely tied together.
Tentative Timelines:
February 1 - HRA review of Land Disposition Policy
February 13 - City Council review of Land Disposition Policy
March 7 - HRA Board requests that staff provide a side-by-side review of the subcommittee- and staff-recommended Land Disposition Policies
April 19 - HRA Land disposition subcommittee meeting
April 22 - HRA Land disposition subcommittee meeting
May 2 - HRA review recommended Land Disposition Policies