Oshkosh staff recommends selling Washington lots at $35,000 to spur workforce housing

City housing staff told a council workshop that bids to make 18 Washington School-area lots “build-ready” came in higher than anticipated and recommended selling the lots for $35,000 each — including nine earmarked for Habitat for Humanity — to close a roughly $200,000 funding gap.

The recommendation follows a July bid process. “The lowest bid came in at about $830,000,” a city housing staff member said, describing the work as private laterals, grading and storm-water preparation that would leave the lots ready for building. That bid equates to an average cost just under $46,000 per lot, staff said.

The bid shortfall leaves a funding gap staff recommended covering largely from city capital-improvement funds (CIP) or other internal sources. “We played with DPW CIP,” the housing staff member said, but ruled it out because the work is on private laterals and thus does not meet DPW’s public-facing requirement. Staff also said they considered borrowing from the state trust fund and noted proceeds from lot sales would offset some costs if developers or Habitat buy lots.

Julie, finance staff for the city, told the workshop that $75,000 in ARPA funds had been designated and spent on purchase of the Washington School site. “$75,000 of ARPA funds was designated for the…