DATE: February 25, 2020
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
Land Trust Property - Land Sale 421 Bunker Drive
Body
SUMMARY AND ACTION REQUESTED:
The Housing & Redevelopment Authority (HRA) to adopt resolution in support of sale of former Cannon River Community Land Trust land at 421 Bunker Drive to homeowners Allan and Nicole Gill.
BACKGROUND:
The Cannon River Community Land Trust (CRCLT) dissolved in 2013. At CRCLT’s request, the HRA agreed to accept ownership of 10 remaining land parcels and hold the same until the owner of the home thereon chooses to sell or refinance their home, at which time the HRA would sell the land to the homeowner and thereby unite the title to the land and the home thereon. Unifying the title in this manner would provide the homeowners the ability to sell your home in a traditional manner with minimal paperwork and no extra timelines or permissions from a third party.
Of the ten remaining land parcels transferred to the HRA by CRCLT in 2013, four remain in the ownership of the HRA. On January 28, 2020 the HRA discussed options by which the remaining four land parcels it owns might be transferred to the individual homeowners. The Board voted to offer these homeowners the opportunity to purchase the land on which their homes are situated for an amount equal to 25% of the Rice County Assessor’s land value for 2020. Staff was directed to send an offer letter to each of the four remaining homeowners with this information. The offer will remain in effect for six months from the date of the offer letter.
ANALYSIS:
The Northfield HRA recognized the CRCLT’s central purpose was to promote the welfare and well-being of the Northfield community by providing a more affordable option for homeownership to the public than the market would otherwise provide. The HRA felt that the offer to sell the land protects the homeowner’s initial investment and allows the homeowner to realize the full land value upon a future sale or refinancing.
The 2020 Rice County assessed value of the land at 421 Bunker Drive is $47,700.00. The HRA offered to sell the land to the homeowner for $11,925.00. Homeowners Allan & Nicole Gill accepted the HRA offer and plan to purchase the land from the HRA, with a closing to occur in late February, 2020.
OPTIONS:
N/A
RECOMMENDATION:
Staff recommends the HRA Board Members review and adopt the Resolution for the sale of land at 421 Bunker Drive to homeowners Allan & Nicole Gill.