HRA Meeting Date: April 3, 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.
• Review of and the public hearing on the consideration of Central Park becoming a local heritage preservation site will be on the City Council agenda for April 1, 2025.
• The Planning Commission will review for conformity to the adopted Comprehensive Plan for the HRA sale of 307 Sumner Street to Rice County Habitat. Staff is working with all parties to address an encroachment issue.
• The Archer House site plan 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 plans to close on 115 5th Street. W. (Northfield News building) March 27, 2025 and begin applying for planning and building permits shortly thereafter and hope to open this year. The Heritage Preservation Commission (HPC) will review the project to provide feedback at their April 2, 2025, meeting because the property is adjacent to the historic district.
• Staff have reached out to the Cedar Meadows development team and are waiting to hear back on 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 City has successfully rezoned a significant amount of property within the Northwest Area to accommodate light industrial development at the end of 2024. EDA staff continue to facilitate discussions among interested developers, utility providers, and the property owners regarding future development. More information on the development area can be found with the provided hyperlink.
• The Bridge Square project is on pause for review on budget and timing. The HPC has asked for different lighting and seating options to review. The city and consultants are bringing forward alternative options at the HPC meeting on April 2, 2025.
• 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 will be 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.
• Staff continue to work with Post Consumer Brands on the Ames Mill Dam. The main discussion includes timeline of transferring ownership of the dam. Staff are researching non-profit groups to potentially work with who specialize in dam reconstruction and help find financial assistance as well. The dam is part of our Downtown Historic District, so a certificate of appropriateness will be required for any work on the dam. Staff will update and are working with the HPC on any progress related to the project.
• 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.
• The EDA received an update on the status of Ice Arena project during the March 24, 2025 EDA meeting. More information on that discussion can be found with the provided hyperlink. The EDA will have a role in the financing structure of the future ice arena. Using a financing tool called “lease-revenue bonding,” the EDA will issue bonds to improve the facility. The EDA took action via resolution on September 23, 2024 to support the use of this financing tool. For more information, feel free to watch and review the packet materials from September 23, 2024 with the provided link.
• 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.
• EDA’s Façade Improvement Grant Program has awarded two grants for downtown buildings - 17 Bridge Square (By All Means Graphics Building) and 409 Division (Northside Boards Building). Thank you to all who applied!
• 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 staff submitted an application for Local Housing Trust Fund matching funds of $158,250 ($150,000 for the $1-$1 match, and an additional $16,500 eligible for the $2- $1) on March 19, 2025 to the Minnesota Housing Finance Agency (MHFA). There are $5.8 million available as matching funds and MHFA has shared that they anticipate the grant program will be oversubscribed. Selections will be announced in May or June 2025.
• The HRA was recently contacted by Standard Companies to inquire as to our municipality’s appetite to issue tax exempt bonds for the purchase and rehab of a subsidized property here in Northfield. More information to come.
• 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. Staff has reached out to the listing agent and more information will be shared in April.
• The HRA has received Northfield Estates application for 4D tax status. Applications are due to Minnesota Housing Finance Agency by March 31, 2025 for taxes payable 2026.
• HRA Staff has presented to the Planning Commission on March 20 and the EDA on March 24 the proposed ordinance changes for Short-Term Rentals and removal of the 20% Rental License Restriction in N1 and N2 zones. The Planning Commission held the public hearing on the ordinance changes. Both bodies have recommended the staff recommendations for adoption. Timeline:
o April 8 - The City Council will have opportunity to review the changes at the work session;
o April 17 - Planning Commission will formally recommend adoption of the changes;
o May 6 - City Council 1st Reading;
o May 20 - City Council 2nd Reading;
o Ordinances go into effect June 29, 2025.
• HRA Owned Rental Properties:
o 2334 EL - Update is provided in packet.
o 2330 EL - 90-day notice to vacate by June 30, 2025.
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:
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