City Council Meeting Date: October 7, 2025
To: Mayor and City Council
From: Ben Martig, City Administrator
Mikayla Schmidt, Interim Community Development Director
Title
Consider Approval of the Fourth Amendment to the Original Ground Lease between St. Olaf College and the City of Northfield.
Body
Action Requested:
The Northfield City Council considers approval of the proposed fourth amendment to the Original Ground Lease between St. Olaf College and the City of Northfield.
Summary Report:
This fourth amendment would release Outlot A, North Booster Station, owned by North & Cedar 62, LLP from the ground lease between St. Olaf College and the City of Northfield. Below is a summary of what the ground is being released from and background:
• The land that contains the hospital is owned by St. Olaf College and leased to the City of Northfield pursuant to a Ground Lease that was originally done in 2001. This Ground Lease was subsequently amended three times.
• The Ground Lease also encumbers the land north and west of the hospital (which contains the Benedictine Living Community), and the land east of the hospital (which has been sold by St. Olaf to North & Cedar 62 LLP and is now the land to be developed).
• The Ground Lease encumbers the North & Cedar land by saying that land cannot be used for a hospital, medical clinic or medical office.
• Premier Title is handling the title exam and closing work for the infrastructure loan. As part of that work, Premier Title suggests releasing the North & Cedar land from the terms of the Ground Lease so when individual lots are sold in the future to third party builders or homeowners, the existence of this Ground Lease and the need for a release does not come up on every sale.
Northfield Hospital & Clinics (NH+C) has been provided the information on the ground lease and do not have concerns with this amendment as written.
Staff are supportive of the amendment to the original ground lease.
Alternative Options:
A vote against the agreement would create a situation where North & Cedar 62, LLP could potentially not close on their construction financing for the project.
Financial Impacts:
The proposed plat would create 44 single family lots, 41 detached villa style lots (single family), 14 twin homes (28 units), 12 triplex lots (36 units), senior co-op building (~ 60 units) over three phases. This will bring additional tax base to the community and offer a variety of housing options which support our comprehensive plan and strategic plan.
Tentative Timelines:
October 7, 2025: Approval of the fourth amendment
October 8, 2025: North & Cedar 62, LLP closes on their financing