The Hibbing City Council voted Wednesday to commit $2,464,413 in local support to help the Housing and Redevelopment Authority (HRA) of Hibbing apply to the Minnesota Housing Finance Agency (MHFA) for funding to complete Mesabi Manor, the second phase of the Green Haven Apartments redevelopment.

The city approved resolution 25-0603 authorizing the local match, and passed related motions to request conveyance of public-utility parcels and to enter into a purchase agreement with the HRA for a tax-forfeit parcel appraised at $42,000. Councilor Hoffman Sockerman made the motion to commit the match; Councilor Swiberger seconded, and the motions carried.

"Tonight, it really marks a key moment for us," Jackie, executive director of the HRA of Hibbing, told the council, describing the Mesabi Manor phase as the final 48 units to replace aging Green Haven buildings. She said the HRA previously secured roughly $26 million for phase 1 and that completing phase 2 is necessary to retain design consistency, lower future maintenance costs and allow an orderly sale of vacated parcels once residents relocate.

The HRA explained the local commitment would be documented by a promissory note at 0% interest with a 30-year maturity and that the city could accept alternative repayment sources, including grants the HRA pursues. The resolution text included a city first right of refusal on certain property transfers; it also states the note would become due if the HRA's ownership entity sold the Mesabi Manor property.

Jackie told the council MHFA's scoring process is highly competitive and that a local match is worth up to 16 points in the agency's evaluation. The HRA plans to submit its MHFA application on or before the July 10 deadline and expects award notifications in December 2025. She said the two-phase project represents roughly $58 million in total development between the phases if all funding is secured.

Council members also approved a request for free conveyance of three parcels from the Hibbing Public Utility (identified in the staff report as parcel IDs 139005004696, 140029000607 and 140029000609) to create a public access road to serve the development and authorized a purchase agreement to convey a tax-forfeit lot at 3900 Fifth Avenue to the HRA contingent on the HRA securing construction funding.

City staff and HRA representatives said additional outside funding conversations are underway to reduce the city's net obligation; Jackie said the HRA has pursued Iron Range Resources and Rehabilitation Board (IRRRB) and other grants, and would apply to additional sources after the MHFA deadline if needed.

The council recorded several safeguards in the resolution language to allow prepayment of the note without penalty and to permit repayment from other grant proceeds if the HRA obtains them.

The action advances a multiyear plan to replace Green Haven, built in the early 1950s, with new affordable rental housing. Jackie said the HRA expects phase 1 to close this winter with groundbreaking next spring and that phase 2 would follow if MHFA funding and other commitments align.

The council vote followed presentations by city staff and the HRA and brief council questions about timing, scoring and the city's exposure under the promissory note.

If the HRA is successful, the project will add new affordable units and is expected to bring construction jobs and economic activity to Hibbing; the council directed staff to continue coordination with the HRA on final agreements and next steps.