CRA and city staff weigh faster sales, lot subdivision and affordable housing tools to activate excess city land

CRA board members and staff debated how to move dozens of city‑owned lots from inventory to development, with several members urging faster action to create affordable housing and neighborhood investment. Board members described multiple unsolicited letters of intent from local developers and community groups and asked staff to clarify which lots are encumbered by previous funding programs and which are free to transfer. City staff said many lots are restricted by prior funding sources and deed restrictions from programs such as SHIP and HUD, which limit how the city may resell or repurpose parcels. “Some of these properties were purchased with SHIP ... and it's going to have to be dedicated,” CRA staff said, explaining that constrained funding sources can require reimbursement or preserve affordability covenants if the property transfers. Board members proposed several immediate steps: identify and prioritize unencumbered lots for quick transfer, subdivide larger residential parcels to create smaller buildable lots to maximize production, use targeted incentives (including CRA payment of permitting or impact fees) to reduce developer cost, adopt a scoring matrix to prefer local small developers or adjacent property owners, and consider permanent affordability tools such as a community land trust or lien mechanisms to prevent quick resale for profit. Staff said current practice is to request an appraisal when an unsolicited offer arrives and then present appraisal and title restrictions for decision by the CRA or city commission. Several board members called that process slow and said they wanted a faster workflow with staff presenting immediate options for lots with active letters of intent. Staff agreed to prioritize recent LOIs and return with appraisals and encumbrance information and to prepare an RFP mechanism for rotating real estate/comps support to speed valuations. No transfers were approved at the workshop. Board members asked staff to return promptly with a list of candidate lots that are unencumbered or otherwise ready for rapid disposition, and to bring refined proposals for incentives and scoring criteria.