Council approves transfer of two city lots to Mitchell Area Development Corporation for Habitat homes; multiple developer agreements and related items also pass

The Mitchell City Council voted to approve a transfer agreement that will move two city-owned lots in the 1200 block of East First Avenue from the city to the Mitchell Area Development Corporation (MADC), which will then transfer the parcels to Mitchell Regional Habitat for Humanity for construction of owner-occupied townhomes.

City staff described the transfer as consistent with prior practice: the city transfers specific lots to the local development corporation, which then conveys the lots to Habitat under a purchase agreement. The council was told the purchase price for the lots to MADC was listed at $1 in the transfer document. A council member noted the city previously acquired a larger parcel for about $1 million and that only a portion is being transferred to Habitat.

Rachel Hagenbaugh, executive director of Mitchell Regional Habitat for Humanity, spoke in support and described plans for owner-occupied townhouses with attached garages. She said the lots are vacant and the project aims to provide affordable homeownership options and complement nearby apartment development. “These lots are vacant with no individuals or families currently residing on there. Our goal is to take these unused parcels and to turn them into something that serves public good,” Hagenbaugh told the council.

The council also approved related development and administrative items in the same meeting: - Developer agreements tied to Tax Increment District (TID) numbers 41 and 42 (staff said these agreements set terms for passing increment to developers; the TID 41 project was described as associated with Groeneweg LLC and the Woods Apartments). Council approved both developer agreements on motion. - An agreement (A2025-35) for hosted software and services with H2O Analytics Corp. to provide a customer-facing water-usage portal; staff expects to train city staff and go live within months. - A transfer/assignment agreement (A2025-38) to convey two lots to MADC for Habitat for Humanity and a related resolution (R2025-39) declaring the building at 1215 East First Avenue surplus so it may be auctioned. Council approved a surplus resolution for several properties tied to the broader parcel discussions and authorized auction procedures. - Annexations and rezoning items: council approved multiple annexation resolutions (including petitions from CGM Consulting Inc. and JTZ Properties LLC) and a rezoning converting a previously commercial parcel back to TWC (applicant intended storage or shop use; planning commission had recommended approval). Notices and neighbor contacts were completed per staff.

Votes and process: motions to approve the transfer, developer agreements, the H2O Analytics services agreement, surplus resolution and the annexations carried. Council also directed staff to continue implementation work, including fee schedules and inter-agency steps where necessary.

Ending: Staff said they will return with final purchase and transfer documents, implementation details for the H2O Analytics portal, and auction timing for surplus buildings.