City Council Meeting Date: June 3, 2025
To: Mayor and City Council
City Administrator
From: Jake Reilly, Community Development Director
Melissa Hanson, Housing Coordinator
Title
Consider Greater MN Housing Fund Grant Application for Housing Development Property Adjacent to Meadows Park.
Body
Action Requested:
The Northfield City Council is asked to consider a resolution authorizing application to the Greater Minnesota Housing Infrastructure Grant Program for up to $800,000 to support the infrastructure needed to develop up to 40 units of housing affordable to those making at most, 150% of the area median income ($124,188). Rice County area median income is $82,792.
Summary Report:
Staff is working with the Community Action Center to develop a grant application to Minnesota Housing's new Greater Minnesota Housing Infrastructure Grant program. The program uses general obligation infrastructure bonds to support cities, counties and Tribal Nations creating sites for workforce and affordable housing in Greater Minnesota.
Grant funds can be used to cover up to 50% of capital costs of physical public infrastructure necessary to support a qualifying housing development. This may include sewers, water supply systems, utility extensions, streets and more, necessary to support single-family, multifamily, homeownership and rental housing development. Capital costs to develop the infrastructure for the homes is estimated at $1,200,000 based on existing projects let for bid in 2024 and 2025.
Applicants' matching funds may include in-kind contributions, such as donation of land. The land in question for this grant application is adjacent to Meadows Park in the southeastern corner of the City. The match must be committed in the grant application. Staff has identified the following methods for generating the required $800,000 in matching funds:
* Selling or gifting the land at estimated market value (currently expected to be $78,700) for a total of at least $1,41...
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