HRA Meeting Date: June 30, 2025
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
Staff Updates on Outstanding Community Development Items and City-Wide projects
Body
Action Requested:
No action. There are a number of outstanding items related to Community Development. Below is a summary update on each item. Staff will provide an update during the meeting and the Board has the opportunity to discuss each item individually if desired.
Summary Report:
City Redevelopment Projects, EDA, HRA, Planning Applications & Related Updates
• See hyperlink on the City’s Construction & Development Map.
• Central Park was approved by City Council to become a local heritage preservation site.
• The Planning Commission reviewed for conformity to the adopted Comprehensive Plan for the HRA sale of 307 Sumner Street to Rice County Habitat.
• Staff continues to work on splitting the lot at 307 Sumner Street into 4 distinct lots in order to obtain individual financing and avoiding the requirement to establish a CIC - Common Interest Community - of whose cost impacts affordability.
• No new updates for The Archer House site plan application. The application is still open and needs final approval. Staff are working with the development team to complete the review. The development team plans to begin construction on the site this year.
• Loon Liquor closed on the purchase of 115 5th Street. W. (Northfield News building). The Planning Commission reviewed, and City Council approved, the conditional use permit application to operate a micro-distillery within the downtown commercial district. The EDA closed on 2 loans for the project.
• Staff have reached out to the Cedar Meadows development team and are waiting to hear back on an updated timeline for 2025. Phase I of Cedar Meadows includes a 45-unit senior housing coop. There are more than 55 reservations collected. The Gracewin cooperative's model is to start the permitting process once they have 72 reservations. The project team is optimistic that they’ll be breaking ground yet this year.
• The Bridge Square project planning phase nears completion. Staff and the consultant team gathered lighting and seating options for the HPC to review and approve.
• Staff received one letter of intent from a development team for the 5th and Washington redevelopment project. The team proposed a condo project. Staff and the team are doing due diligence with the proposer, architects, and financial advisors to develop a financially feasible and responsible proforma prior to committing more time or funds. The EDA is the body responsible for the 5th and Water Redevelopment Project. The EDA will be reviewing this project status in the near term.
• Staff continue to work with Post Consumer Brands on the Ames Mill Dam. Staff has scheduled a meeting with American Rivers who specialize in dam removals to discuss potential partnership. The dam is part of the Downtown Historic District, so a certificate of appropriateness will be required for any work on the dam.
• The EDA approved a budget allocation for a pilot Business Micro-Loan program. Staff will be preparing this item for future discussion at a later EDA meeting.
• The EDA is starting a program for businesses that is similar to the City’s residential matching Energy Efficiency Rebate Program for which the HRA is passthrough for the Carbon Reduction Fund. More information will be available on the City’s website soon.
• HRA was awarded $150,000 in matching funds from Minnesota Housing Finance Agency (MHFA) for the Local Housing Trust Fund. See attached letter.
• The City Council approved Standard Companies request to support an application to the State to issue tax exempt bonds for the purchase and rehab of a subsidized property here in Northfield. Once the application is approved, a public hearing will be scheduled to take place in front of the City Council this fall.
• 440 Water Street is for sale and the Community Action Center (CAC) has reached out to the HRA to enquire about partnering to redevelop the property for affordable housing. While in discussions, one of the structures was damaged by fire. The Building Official required the property owner to move forward with the removal of the remaining structures now due to them being an attractive nuisance.
• HRA staff is meeting Northfield Estates management weekly to address the Fire Chief’s and Building Official’s life-safety concerns. As part of Northfield Estates participation in the 4D tax program, the HRA will be reimbursing up to $6,000 to Northfield Estates for Knox Boxes (fire department ingress to the buildings) and 1st floor window replacement and repairs in all buildings (building department’s concern regarding tenant egress). This property is also eligible to receive funding to assist them in the purchase of playground equipment, however, the owners have put a pause on the playground equipment until the city’s concerns have been addressed.
• The proposed ordinance changes for Short-Term Rentals and removal of the 20% Rental License Restriction in N1 and N2 zones have gone through the public hearing process. Both Planning Commission and EDA have recommended the staff recommendations for adoption. Timeline:
o Ordinances go into effect June 29, 2025.
• HRA Owned Rental Properties:
o 2334 EL - Closing is scheduled for Monday, June 30, 2025.
o 2330 EL - 30-day notice to vacate by June 30, 2025.
§ Staff has received a market analysis for the property by a real estate professional
§ Staff has shared this homeownership opportunity with Three Rivers Community Action and Rice County HRA
The City Administrator’s memo for March 2025 is attached for reference to other city initiatives.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
N/A