City plans RFP for 45–47 unit housing project; staff holds option on parcel with TIF reimbursement

City staff told the Crookston City Council on May 5 that they are preparing a request for proposals (RFP) for a 45–47 unit housing project and expect to present the RFP for council review within about 60 days.

Staff said the project would be led by an outside developer, with limited city management, and would use a redevelopment tax-increment financing (TIF) district to reimburse infrastructure and acquisition costs. The city has entered a unilateral real-estate option on a targeted parcel to secure the opportunity; staff said the cost of the one‑year option was $9,900 and that a one‑year extension is available for the same fee. If no developer proceeds before the option expires, the city would forfeit the option fee.

Staff said they had spoken with four to six developers who expressed interest pending release of the RFP and that they had consulted with the city manager in Victoria, Minnesota, to use comparable projects as models. Staff emphasized the RFP process will require developers to present fiscal plans, construction approaches and details about how they will use the TIF to reimburse eligible costs.

Council members asked whether the city will purchase the land; staff said the city will not take possession of the parcel. Instead, the developer will purchase the land at a pre-negotiated price and be reimbursed for infrastructure and acquisition costs through the TIF upon development. Staff estimated the project could begin in 2026 if a developer is selected and financing aligns.