HRA Meeting Date: June 1, 2023
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
HRA to Consider and Approve the Purchase of 308 Cherry Street.
Body
Action Requested:
HRA to Approve Attached Resolution (Att. 1) and Purchase Agreement (Supplemental) the Purchase of 308 Cherry Street.
Summary Report:
HRA Staff approached the homeowner of 308 Cherry Street after HRA secured and purchased the property at 315 Linden Street North, to inquire if the homeowner has an interest in selling the property. The owner currently lives in California and the home has been rented to a family friend for many years. The owner has been considering selling the property, but there didn’t seem to be a “right” time until now. The lot is approximately half an acre and utilities are already present at the property.
The homeowner has requested that we do not close on the home until July 1, 2024 to allow for the tenant family’s youngest to graduate from Northfield High School. Staff and the homeowner decided to proceed with the negotiation for a purchase agreement instead of an option contract.
The HRA exists, in part, to provide a sufficient supply of adequate, safe, and sanitary housing. At this time, the HRA does not have a housing project selected for the property, but recognizes the importance of in-fill and density is to the City of Northfield’s housing strategy.
Alternative Options:
The HRA could choose not to take advantage of this opportunity and the homeowner would sell the property on the open market.
Financial Impacts:
Funding for the purchase would be made with reserve funds. HRA reserves are estimated at $915,634.
Tentative Timelines:
Closing would be scheduled for July 1, 2024.