EDA Meeting Date: November 24, 2025
To: Members of the Economic Development Authority
From: Ben Martig, City Administrator
Mikayla Schmidt, Interim Community Development Director
Emery John, Program Associate
Title
EDA Update on 5th & Washington Redevelopment Project.
Body
Action Requested:
Consider a motion supporting the scoping to include a senior housing co-op, public restrooms, co-located refuse for the surrounding businesses, and public parking at the 5th and Washington site and to seek City Council feedback and direction to the EDA to continue with added due diligence including design, costs, and financial details.
Summary Report:
The Northfield City Council delegated advisory authority to the Northfield EDA for downtown redevelopment projects in Resolution 2024-44 (Attached). The EDA reviewed materials and information related to potential development opportunities including constructing a more accessible and larger municipal liquor store and provided a recommended approach to the 5th and Washington Redevelopment project to Council via EDA Resolution 2024-005 (Attached).
Earlier this year, staff issued a request for Letters of Intent (LOI) to a select group of local developers based on a project opportunity statement that aligns with the EDA’s recommended approach. One letter of intent from a qualified developer, Streetfront Development, was received. Charles Burdick of Streetfront works closely and consistently with Thomas Hertzog of Good Neighbor Homes. For the purposes of this report, consider “Streetfront” to be shorthand for “Streetfront and Good Neighbor Homes.”
Streetfront has explored various development opportunities for the 5th and Washington site. This included a mixed-use liquor store condominium concept that estimated sale price of individual units that would price out the Northfield market. Streetfront took comments from the EDA to redesign the building to match Northfield’s market, and found that a mixed-use site, consistent with the original liquor-store concepts, was yielding untenable per-unit housing costs.
Ebenezer is the largest senior living provider in MN, with 120 locations in over 6 states. Recently, they opened a Lakeville facility, the Fountains at Hosanna, that is an example of their Estoria model. The Estoria is a replicable senior housing cooperative designed to fit into a HUD financing product, which enables the individual co-op units to stay within the market rate.
Ebenezer and Streetfront have been working together to fit the Estoria concept into the 5th and Washington lot. They anticipate 50-60 units with a mix of unit type, all within the senior living cooperative model. They’re working to ensure a net-zero loss of public parking.
While this development diverts the previous mixed-use goal on this site, it does accomplish 50+ units of market rate senior housing with commercial uses on the first floor the senior coop would have for amenities like a gym, meeting room, etc. Cooperative models are popular for senior housing, especially in active adult communities. Additionally, the 2024 Maxfield Housing Study commissioned by the HRA identified this type of housing as an opportunity area given national, state, and local trends of an aging population.
Streetfront and staff are working together to ensure the Estoria model fits within Northfield’s current Land Development Code. There is also the possibility of adding public amenities, like public bathrooms and a co-located refuse space for the adjacent businesses, to the otherwise single-use, owner-occupied building.
Staff is working on alternative locations for the municipal liquor store that accomplish the goals set out by City Council Resolution 2024-044, including a development which provides stimulus to the C-1 business district.
At this time, Streetfront has prepared an update to the EDA on the 5th & Washington Redevelopment project.
There is a motion for the EDA to consider. Should the motion pass staff will continue with due diligence with Streetfront to further advance their analysis. Additionally, the City Administrator will be coordinating a meeting of the Council in consultation with the Mayor as is customary with Council agenda scheduling.
Alternative Options:
The EDA board may suggest an alternative path to review the financial feasibility of proposed redevelopment projects.
Financial Impacts:
Staff time is required now. Other financial resources may need to be committed in the future.
Tentative Timelines:
November 2025 - Streetfront provides this presentation to EDA
November 2025 - EDA to motion, recommending City Council discuss this iteration of the proposal
January 2025 - City Council discusses this iteration of the proposal (pending EDA motion)